09.08.201609:49 Forex Analysis & Reviews: Technical analysis of USD/CHF for August 09, 2016

Long-term review

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USD/CHF is expected to trade with bullish bias above 0.9785. The pair remains positive according to the intraday outlook. A strong support base at 0.9785 (August 8 low) has been formed and should limit the downward attempts. The relative strength index is still above its neutrality area at 50. The 50-period moving average is rising, which maintains the upside bias. As long as support holds at 0.9785, further advance is expected with the horizontal resistance at 0.9875. On Monday, U.S. stock indexes ended slightly lower as gains in energy stocks were offset by losses in health-care shares. The Dow Jones Industrial Average lost 14 points (0.1%) to settle at 18,529, the S&P 500 dipped by 2 points (0.1%) to 2,180, and the Nasdaq Composite was down 7 points (0.2%) to 5,213. Bristol-Myers Squibb, which slumped 16% in the prior session as its lung cancer drug Opdivo failed to meet a study endpoint, shed another 4.7%.

A break above this level would open the way to further upside toward the next resistance at 0.9905. Alternatively, in case of a break below 0.9785, look for further downside with 0.9760 and 0.9720 as targets.

Resistance levels: 0.9875, 0.9905, 0.9985

Support levels: 0.9760, 0.9720, 0.9670

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