FX.co ★ Technical analysis of USD/CHF for July 22, 2016

Overview:

• The USD/CHF pair fell from the level of 0.9906 to bottom at 0.9847 yesterday. Today, the USD/CHF pair has faced strong support at the level of 0.9840. So, the first support has been already faced at the level of 0.9840 and the pair is likely to try to approach it in order to test it again and form a double bottom. Thus, the USD/CHF pair keeps trading in a bullish trend from the support level of 0.9840. According to the previous events, we expect the pair to move between 0.9840 and 0.9906. The major resistance is seen at 0.9906, while immediate resistance is found at 0.9873. Then, we may anticipate potential testing of 0.9873 to take place soon. Moreover, if the pair succeeds in passing through the level of 0.9873, the market will indicate a bullish opportunity above the level of 0.9873. A breakout of that target will move the pair further upwards to 0.9906. The price of 0.9906 represents a double top.

Trading recommendations:

• Buy orders are recommended above the area of 0.9840 (support) with the first target at the level of 1.9873; and continue towards 0.9906. On the other hand, if the USD/CHF pair fails to break out through the resistance level of 0.9840; the market will decline further to the level of 0.9788.