On Tuesday, the USD/CHF pair resumed its growth after some correction in the US against its major competitors. As a result, the pair reached its highs since the end of March.
One of the reasons of the growth, in addition to few positive publications from the US, was an unexpected decision by the Chinese Central Bank to devaluate national currency, which led to the Yuan falling to its 3-year lows.
Support and resistance
Bollinger Bands on the daily chart continues growing and its price range is widening. The indicator formed a sell signal as the price has left the upper border of the range. MACD is turning down and forming a sell signal. Stochastic is leaving the overbought zone and is giving a sell signal as well.
Support levels: 0.9820, 0.9800 (11 August low), 0.9769, 0.97717, 0.9649, 0.9597, 0.9559, 0.9524 (23 July low), 0.9460, 0.9400, 0.9329 (10 July low).
Resistance levels: 0.9862 (local high), 0.9900 (psychologically important level, 11 August high), 0.9930, 1.0000 (psychologically important level).
Open short positions after the breakdown of the level of 0.9800 with targets at 0.9717, 0.9700 and stop-loss at 0.9862.
Long positions can be opened after the breakout of the level of 0.9900 (with the appropriate indicators signals) with the target at 1.0000 and stop-loss at 0.9820.Publication source