FX.co ★ Technical analysis of USD/CHF for August 05, 2020

Overview:

The support level of 0.9216 became the major ressistance at the same level. The USD/CHF pair continues to move downwards from the level of 0.9216. The pair dropped from the level of 0.9216 to the bottom around 0.9118. But the pair has rebounded from the bottom of 0.9118 to close at 0.9147. Today, the first support level is seen at 0.9118, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 0.9226, which coincides with the 23.6% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the USD/CHF pair is able to break out the first support at 0.9118, the market will decline further to 0.9070 in order to test the weekly support 2. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.9118 with the first target at 0.9070 and further to 0.8921. However, stop loss is to be placed above the level of 0.9325.