USD/CHF: technical analysis 20.08.2019

USD/CHF: technical analysis 20.08.2019

Current trend

The USD/CHF pair begins today’s trading with slight bearish bias due to downward correction. If the current trend maintains, the next targets of sellers will be the level of 0.97961 (Murray [-1/8]). There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 0.97840 (middle line of Bollinger Bands). Alternative scenario. The breakout of 0.98267 (Murray [-2/8]) level can accelerate the pair towards 0.98429-0.98680 resistance area. Technical indicators reflect the moderate maintenance of the current upward trend. Bollinger Bands are pointed upwards. MACD is slowly growing in the positive zone. Stochastic is in the overbought zone and is pointed sideways.

Support and resistance

Support levels: 0.97961, 0.97840, 0.97656.
Resistance levels: 0.98163, 0.98267, 0.98429.

Trading recommendations

Long positions can be opened above the level of 0.98267 with the target at around 0.98429 and stop-loss 0.98213.
Short positions can be opened below the level of 0.97961 with the target at around 0.97840 and stop-loss 0.98001.