FX.co ★ Technical analysis of USD/CHF for July 27, 2016

Overview:

• The USD/CHF pair broken support at the level of 0.9862, which acts as a support now. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9862 and 1.0000. Therefore, we expect a range of 138 pips in coming hours. The trend is still above the 100 EMA for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. Hence, the price spot of 0.9862 remains a significant support zone. Consequently, there is a possibility that the USD/CHF pair will move upside. The structure of climbing does not look corrective. In order to indicate a bullish opportunity above 0.9862, buy above 0.9862 with the first target at 0.9955. Besides, the weekly resistance 1 is seen at the level of 0.9955. However, traders should watch for any sign of a bullish rejection that occurs around 0.9955. The level of 0.9955 coincides with the double top. If the pair is able to break the price of 0.9955, then the market will continue moving towards the next objective at 1.0000. Moreover, since the trend is above the level of 0.9862, the market is still in an uptrend. Overall, we still prefer the bullish scenario today.