Technical analysis of USD/CHF for August 26, 2016

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Overview:

  • As expected the USD/CHF pair continues to move upwards from the zone of 0.9625 and 0.9652. Yesterday, the pair rose from the level of 0.9625 to 0.9697 which coincides with a ratio of 38.2% Fibonacci and 61.8% respectively on the daily chart. Today, resistance is seen at the levels of 0.9697 and 0.9717. So, we expect the price to set above the strong support at the level of 0.9625; because the price is in a bullish channel now. The RSI starts signaling an upward trend. Consequently, the market is likely to show signs of a bullish trend. So, it will be good to buy above the level of 0.9650 with the first target at 0.9679 and further to 0.9717 in order to test the daily resistance. If the USD/CHF pair is able to break out the daily resistance at 0.9550, the market will rise further to 0.9717 to approach support 2 today. However, the price spot of 0.9625 and 0.9600 remains a significant support zone. if a breakout happens at the support levels of .9625 and 0.9600 , then this scenario may be invalidated. But in overall, we still prefer the bullish scenario as long as the level of 0.9600 is not breached.

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

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