Technical analysis of USD/CHF for September 07, 2017

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USD/CHF is expected to trade with a bullish bias above 0.9525. Athough the pair posted a pullback, a support base at 0.9525 has formed and has allowed for a temporary stabilization. The relative strength index lacks downward momentum.

The Institute for Supply Management (ISM) said its non-manufacturing index advanced to 55.3 in August from 53.9 in July. In its Beige Book, the U.S. Federal Reserve pointed out an increase in consumer spending with a modest to moderate growth in the overall economic activity in July and August. Meanwhile, U.S. Federal Reserve Vice Chairman Stanley Fischer announced his intention to resign before the end of his term, citing personal reasons.

To conclude, as long as 0.9525 holds on the downside, a further rebound to 0.9615 and even to 0.9640 seems more likely to occur.

Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates the bullish position, and the price below the pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 0.9525, Take Profit: 0.9615

Resistance levels: 0.9615, 0.9640, and 0.9685

Support levels: 0.9490, 0.9460, and 0.9410

The material has been provided by InstaForex Company - www.instaforex.com