Monthly chart
After having remained for several months within the range of rates between line 3/8 (green line) and the line 4/8 (blue line) the USD/CHF pair is apparently preparing for a possible downward climbing in the coming months, as it has failed on several occasions to overcome the line 4/8 (blue line). A strong line of resistance is considered and possibly this month it closes below the 3/8. Clearly it would enter bearish scenario which could eventually take up the line 2/8 (red line) that would be a reversal zone. Meanwhile, we believe that it reaches 0.9277, an important resistance area for this month.
Weekly Chart
In the weekly chart, we can also see that USDCHF remains in a bearish bias and both the oscillator strength and the oscillator trends show that the bears still maintain control. This week could be decisive since there is the close below 0.9155 where the basis of their range of rates in this time frame bounded by the line 3/8 (green line). A possible prolongation to 0.9033 for following weeks is indicated. So we can take short positions in the last week of the month.
Daily Chart
In 1-day chart we see that after 2 days of losing ground against the U.S. dollar, the Swiss franc on Friday rallied to finally close below its daily pivots, in the early hours of August 26 it was observed that after opening below its daily pivot it is limited by it. Furthermore, we note that the centerline of the channel is at 0.9240 gravitation, which can also be an indication that prices will move lower.
This may give us the opportunity to earn 70 pips during today's session as the basis of their range of rates is at 0.9155 bounded by the line 3/8 (green line) Murrey lines.
Therefore, our recommendation for today based on the 3 graphics analyzed is:
Sell below: 0.9222
Stop loss at: 0.9296
Take Profit at: 0.9148
If you have any questions or suggestions, please contact me:
Skype:negomix
Email:antonio.inga@analytics.instaforex.com
