2016-08-11 14:22:43

Review and dynamics
At the beginning of August, the pair USD/CHF rebounded from the lower line of the ascending channel on the daily chart near the level of 0.9635 and, at the end of last week, the pair has reached resistance level of 0.9820 (Fibonacci 38.2% to the decline since December 2015 at the level of 1.0300). However, the rise in the pair was suspended due to weak data on the US labor productivity in Q2, which was released on Tuesday.

The pair USD/CHF fell to support level of 0.9770 (ЕМА200, ЕМА144, ЕМА50 on the daily chart, ЕМА50 on the weekly chart), which is a kind of a balance line. The pair USD/CHF has regularly returned to this level since mid-February. The zone at the levels of 0.9770 and 0.9705 (Fibonacci 23.6%) is also the middle of the range of 0.9950 and 0.9520, where the pair USD/CHF has been traded since March.

Our opinion
If uptrend in the USD continues, the pair may break out resistance level of 0.9820 and go to the levels of 0.9910, 0.9950 in the ascending channel on the daily chart. This scenario can be possible if the pair goes above the level of 0.9770.

On 4-hour chart the indicators give signals for long positions. On the other timeframes, the indicators give mixed signals.

As an alternative scenario the pair USD/CHF can go below support level of 0.9705 towards the lower limit of the ascending channel near the level of 0.9635.

However, long positions are preferable.

Support levels: 0.9705, 0.9635, 0.9580 and 0.9520.
Resistance levels: 0.9770, 0.9820, 0.9910, 0.9950 and 1.0000.


Trading tips
Sell Stop: 0.9730. Stop-Loss: 0.9760. Targets: 0.9705, 0.9635, 0.9580 and 0.9520.
Buy Stop: 0.9780. Stop-Loss: 0.9740. Targets: 0.9820, 0.9910 and 0.9950.

Support level of 0.9770 ( a line of balance)
Support level of 0.9770 ( a line of balance)

Indicators suggest to open long positions
Indicators suggest to open long positions