Daily chart
USDCHF lost ground against the dollar during the first day of the week and it is very close to the top line of the trading range of 5/8 (green line) placed at 0.9399.
Switzerland's weaker than expected PMI SVME is probably the main reason why the franc was not off to a good start In this trading week. The actual figure dipped from 57.4 to 54.6 in August, lower than the estimate of 55.9. This shows that, even though the manufacturing industry still expanded for the month, growth was much weaker than expected.
On the other hand, the oscillator strength shows a decrease in the strength of the bears and early domination of the bulls.
4-hour chart
In 4-hour chart we can see the apex line formed by the top of your channel uptrend line and bearish crosses the 0.9350 area. Therefore, we can predict that when the bulls win the battle in this area, USDCHF makes a break and that probably leads to reach a new target 0.9399.
In addition, we must consider that the line 7/8 (yellow line) of Murrey, which is at 0.9369, the same that is considered a weak resistance area that the price will have no difficulties to overcome to get to the line 8/8 (line blue)
1-hour chart
Finally, the 1-hour chart shows bullish channel has been exceeded by now and has placed the price at the line 5/8 (green line) considered the top line of its trading range and easily may extend to the line 8/8 or even +1/8 at 0.9415. Therefore, our recommendation for Tuesday September 3 is:
Purchase: 0.9354 The profit at: 0.9399 Stop loss at: 0.9259
If you have any questions or suggestions, please contact:
Email: antonio.inga@analytics.instaforex.com