04.08.201611:37 Forex Analysis & Reviews: Technical analysis of USD/CHF for August 04, 2016

Overview:

• Yesterday, the USD/CHF pair moved from its bottom at 0.9630 and continued to rise to the top of 0.9745. Today, on the one-hour chart, the current rise will remain within a framework of correction. In the H4 time frame, if the pair fails to pass through the level of 0.9786, the market will indicate a bearish opportunity below the strong resistance level of 0.9786 (level of 0.9786 coincides with the 61.8% of Fibonacci), which is expected to act as a major support today. Additionally, the RSI is still signaling that the trend is downward as it is still strong below the moving average (100). Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9786 with the first target at 0.9684. If the trend breaks the support level of 0.9684, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.9622 in order to test the daily support 2 (horizontal green line). On the other hand, if a breakout happens at the resistance level of 0.9786, then this scenario may become invalidated. But in overall, we still prefer the bearish scenario today.