FX.co ★ Technical analysis of USD/CHF for August 05, 2019

• The weekly pivot point is set at the point of 0.9818 on the H4 chart since last week. The USD/CHF pair broke support which turned to strong resistance at the level of 0.9818. The level of 0.9818 coincides with a golden ratio (38.2% of Fibonacci), which is expected to act as major 0.9818 today. History usually repeats itself at certain level. So it will be of the wisdom to use historic rates to determine future prices. Because, support can turn into resistance and vice versa. Once the price breaks below a support level, the broken support level can turn into resistance. This suggests the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bearish trend.
• Further close below the low end may cause a drop towards 0.9692 at least. Nonetheless, the weekly resistance level and zone should be considered (0.9818). In other words, sell orders are recommended below 0.9818 with the first target at the level of 0.9692. From this point, the pair is likely to begin a decending movement to the point of 0.9622 and further to the level of 0.9496. The level of 0.9496 will act as strong support in coming days.

RSI indicator:

• The Relative Strength Index (RSI) is considered oversold because it is below 70 and 30. The RSI is still signaling that the trend is downward as it is still strong below the moving average (100) and (50).

Trading recommendations:

• Sell (sell limit) below the weekly pivot point at the price 0.9818; with the targets of:
• - First target at 0.9692 (double bottom).
• - Second target at 0.9622 (support 1).
• - Third target at 0.9496 (support 2).
• The stop loss should be placed above the weekly pivot point at the price of 0.9865.
• Also, you have to note that usually correction happens at the double top and double bottom. Therefore, it should to shift your take profit.

The weekly standard pivot point

• Resistance 3: 1.0266
• Resistance 2: 1.0140
• Resistance 1: 0.9944
• Pivot Point: 0.9818
• Support 1: 0.9622
• Support 2: 0.9496
• Support 3: 0.9300

Tips:

• The trend will move among these weekly levels in the whole week.
• Look! The weekly and daily pivot point play an important role in Forex trading.

Warning:

• Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.