Technical analysis of USD/CHF for August 24, 2016
The USD/CHF pair rose from the level of 0.9574 to bottom at 0.9643 yesterday. Today, the USD/CHF pair has faced strong resistance at the level of 0.9684 (38.2% Fibonacci retracement levels).
So, the strong resistance is already sen at the level of 0.9684 and the pair is likely to try to approach it in order to test it again and form a double top.
Hence, the USD/CHF pair is continuing to trade in a bearish trend from the new resistance level of 0.9684 in order to form a bearish channel. According to the previous events, we expect the pair to move between 0.9684 and 0.9574. Also, it should be noted major support is seen at 0.9521, while immediate support is found at 0.9622. Then, we may anticipate potential testing of 0.9622 to take place soon.
Moreover, if the pair succeeds in passing through the level of 0.9622 , the market will indicate a bearish opportunity below the level of 0.9572. A breakout of that target will move the pair further downwards to 0.9521.
Sell orders are recommended below the area of 0.9684 (major resistance) with the first target at the level of 0.9622; 0.9572 and continue towards 0.9521. On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.9684.