Technical analysis of USD/CHF for August 30, 2017

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Overview:

  • The USD/CHF pair continued to move downwards from the level of 0.9601. Yesterday, the pair dropped from the level of 0.9601 to the bottom around 0.9430. But the pair has rebounded from the bottom of 0.9430 to close at 0.9560. Today, the first support level is seen at 0.9511, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 0.9601, which coincides with the 50% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the USD/CHF pair is able to break out the first support at 0.9511, the market will decline further to 0.9430 in order to test the double bottom again. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.9601 with the first target at 0.9511 and further to 0.9430. However, stop loss is to be placed above the level of 0.9641.
The material has been provided by InstaForex Company - www.instaforex.com