FX.co ★ Technical analysis of USD/CHF for July 20, 2016

Overview:

• Yesterday, the market moved from its bottom at 0.9815 and continued to rise towards the top of 0.9877. Today, on the one-hour chart, the current rise will remain within a framework of correction.
• In the H4 time frame, the USD/CHF pair broke resistance, which turned into strong support at the level of 0.9862. The level of 0.9862 coincides with the ratio of 78.6% Fibonacci, which is expected to act as minor support today.
• Moreover, the strong support is seen at the price of 0.9790.
• Today, we expect that the USD/CHF pair continues moving in a bullish trend from the support levels of 0.9815 and 0.9862.
• Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
• So, buy above the level of 0.9862 with the first target at 0.9904 in order to test the daily resistance 1. Furthermore, if the trend is able to break out through the first resistance level of 0.9862 we should see the pair climbing towards the double top (0.9955) to test it.
• On the other hand, it would also be wise to consider where to place stop loss. It should be set below the major support of 0.9790.