Technical analysis of USD/CHF for August 31, 2016
The USD/CHF pair has broken resistance at the level of 0.9792, which acts as support now. So, the pair has already formed minor support at 0.9792. The strong support is seen at the level of 0.9744 because it represents the weekly pivot. Also, it should be noted that the level of 0.9744 is coincides with the ratio of 50% Fibonacci retracement level. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend.
In the H4 time frame, the RSI and the moving average (100) are still pointing to the upside. Therefore, the market indicates a bullish opportunity at the level of 0.9792. Buy above the minor support of 0.9792 with a target at 0.9861 (this price is coinciding with the ratio of 78.6% Fibonacci). Another resistance will be seen at the level of 0.9901.
On the other hand, if the pair closes below the minor support (0.9792), the price will fall into the bearish market in order to go further towards the strong support at 0.9744. Hence, we expect a daily range between the level of 0.9744 and 0.9901.
Also, the double bottom is seen at the level of 0.9695. If the trend is buoyant, then the currency pair strength will be defined as following: USD is in an uptrend and CHF is in a downtrend.
Support is seen at 0.9744 and the strong resistance is already set at 0.9901.