Technical analysis of USD/CHF for August 02, 2016
Yesterday, the USD/CHF pair dropped from the level of 0.9734 (this level of 0.9734 is coincides with the ratio of 50% Fibonacci Expansion) to the bottom around 0.9635. Alos, it should be noted that the USD/CHF pair continues to move downwards from the level of 0.9734 on the H4 chart.
Therefore, the first resistance level is seen at 0.9734 followed by 0.9786, while daily support 1 is seen at 0.9622 today. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9734 and 0.9622.
If the USD/CHF pair fails to break through the resistance level of 0.9734, the market will decline further to 0.9622. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9572 in order to test the daily pivot point.
On the there hand, it would also be wise to consider where to place a stop loss; this should be set below the second resistance of 0.9786.