Daily chart
In our opinion, after a session with few movements, USD/CHF was held in a sales area. This is because it stays below 0.9277, despite it tried to overcome it due to several occasions, but it was unsuccessful.
It is important to note that the line 4/8 is to be a strong area of support or resistance. According to the theory of Murrey this level is the best for a new purchase or sale.
It is a strong level of support if the price are above 4/8.
And conversely, it becomes a strong area of resistance if the price is below 4/8.
On the other hand, the share price bands also shows a clear downtrend, the basis for entering a buy zone extending even below 0.9033, where the line 2/8 is placed.
4H chart
In 4H chart we note that USDCHF is still moving below a downtrend line that converges with the same line 8/8 (blue line) around 0.9277. Also, line 8/8 is considered as the major reversal zone and it is hard to beat, the last stand occurs only in extreme cases. So our sales orders should have a stop loss 10 or 20 pips above 0.9277 after a break of this area. Penetration the trendline completely changes the scenario we have.
Our minimum target for take profit is at 0.9033, as well as line 4/8 at 0.9046 marks a support zone with the thick line drawn in red.
1H chart
Finally, our 1h chart also reveals a possible continuation of the appreciation of the Swiss franc against the U.S. dollar. In the chart we can see that at this moment the pair is trading at line 5/8 that has to be the top line of the same trading range, which matches the top line of the downtrend channel allowing us to predict one fall to 0.9186 after plunging extends, at least, to 0.9155. Moreover, line 6/8 around 0.9247 is considered as a strong point of reversal. If we consider that this line converges with the center line of its upward trend in a longer period, it also gives us the possibility of a downward bounce this day.
Therefore, based on the analysis of the three charts our tips for today are: Sell below 0.9247, Stop loss at 0.9277, 1 Take profit at 0.9186, 2 Take profit at 0.9155.
Warning: We do not know what impact possible U.S. intervention in Syria will have on the financial markets. Hence, regardless what order we place we should set a stop loss calculated in advance in order to protect ourselves from the volatility that the markets are likely to have today Thursday, August 29.