28.07.201611:25 Forex Analysis & Reviews: Technical analysis of USD/CHF for July 28, 2016

Overview:

• As expected the USD/CHF pair continues to move downwards from the zone of 0.9950 and 0.9905. Yesterday, the pair dropped from the level of 0.9950 to 0.9830. Today, resistance is seen at the levels of 0.9905 and 0.9950. So, we expect the price to set below the strong resistance at the levels of 0.9905 and 0.9950; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.9905 with the first target at 0.9789 and further to 0.9738 in order to test the daily support. If the USD/CHF pair is able to break out the daily support at 0.9738, the market will decline further to 0.9687 to approach support 3 which coincides with a ratio of 38.2% Fibonacci on the daily chart today. Besides, it should be noted that the price spot of 0.9905 and 0.9950 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.9955 is not breached. However, it would also be wise to consider where to place a stop loss; this should be set above the double top of 0.9955.