17.08.201612:52 Forex Analysis & Reviews: Technical analysis of USD/CHF for August 17, 2016

Overview:

• As expected the USD/CHF pair continues to move downwards from the level of 0.9684. Yesterday, the pair dropped from the level of 0.9684 (this level of 0.9684 is coincides with the ratio of 38.2% Fibonacci retracement) to the support around 0.9621. Today, the first resistance level is seen at 0.9684 followed by 0.9735, while daily support 1 is seen at 0.9621. Hence, if the pair fails to pass through the level of 0.9621, the market will indicate a bearish opportunity below the new support level of 0.9621 (23.6% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100). Thus, the market is indicating a bearish opportunity below 0.9621, so it will be good to sell at 0.9621 with the first target of 0.9571. It will also call for a downtrend in order to continue towards 0.9520. The daily strong support is seen at 0.9520. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9735. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9680 and 0.9520; for that we expect a range of 160 pips.