Technical analysis of USD/CHF for July 31, 2017

USD/CHF is expected to trade with bullish bias above 0.9650. The pair is consolidating above the key support at 0.9650, which should limit the downside potential. The relative strength index lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

The U.S. Commerce Department reported that the country’s GDP grew at a 2.6% annual rate in the second quarter, higher than +1.2% in the first quarter but lower than +2.7% expected.

Therefore, above 0.9650, look for a further rise to 0.9730 and even to 0.9765 in extension.

Chart Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 0.9650, Take Profit: 0.9730

Resistance levels: 0.9730, 0.9765, and 0.9800

Support levels: 0.9595, 0.9550, and 0.9500

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of USD/CHF for July 31, 2017