Technical analysis of USD/CHF for September 01, 2016
As expected the USD/CHF pair continues to move upwards from the level of 0.9792. Yesterday, the pair rose from the level of 0.9792 (this level of 0.9792 represents the first support)) to the top around 0.9861. Today, the first resistance level is seen at 0.9901 followed by 0.9949, while daily support 1 is seen at 0.9792. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9792 and 0.9949; for that we expect a range of 157 pips (0.9949 – 0.9792). If the USD/CHF pair fails to break through the resistance level of 0.9949, the market will decline further to 0.6546. 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 0.9792 in order to retest the daily support. On the contrary, if a breakout takes place at the resistance level of 0.9949 (the double top), then the trend will call for strong bullish market in coming hours.