Written By : ForexAbode.com || Sunday, 27 July 2014 03:13 GMT

USD/CHF Weekly Outlook - July 28 to August 1, 2014

USD/CHF continued the upward moves and went as high as 0.9052 before closing for the week at 0.9048.

 

The highlight of the last week was not just a smooth break above the psychological 0.9000 level but the failure of 0.9038 resistance. This level had proved to be a strong resistance during February and then during June, the pair had failed miserably just one pip below this, at 0.9037. A break of this double resistance brings near-term bullish outlook into the picture. 

 

On the upside the first level of resistance will be expected at of just below 0.9100. Any break above o.9100 will confirm that the pull of 0.9000 has ended and such a break will then target 0.9154. Please note that 0.9154 is the 38.2% retracement of the fall from 0.9839 to 0.8699. This level also becomes a critical resistance as it is just 2 pips below 0.9156, which had proved to be a strong resistance during the mid-January 2014. 

 

On the downside the support will be expected to hold over 0.9003. This previous resistance should now turn into the support, which was also indicated when a support was seen at 0.9008 during the last week. Any break below that, but more importantly 0.9000 will start neutralizing the immediate bullish outlook but a better indication will come if the support of 0.8969 fails and any break below 0.8959 will confirm a topping to bring another fall towards 0.8856. 

 

This is not for the next week but overall, In case the resistance near the above mentioned 38.2% Fibonacci retracement level i.e. in the range of 0.9134 to 0.9156 holds and any break below 0.8699 takes palce then the downtrend should resume again. Such a break would then target 0.8568 to 0.8630 support as we had indicated in an old post of December 16, 2013 titled "Is USD/CHF heading for a nosedive". 0.8568 was a strong support during the week of October 24,2011 and this level is slightly above the 50% retracement of the gains from 0.7069 to 0.9972, which is at 0.8520. Please also check the post titled "USD/CHF 2014 Outlook – Who Is Winning As The Safe Haven Currency?" to check on all these indicated levels.

USD/CHF price-action - Various views

USD/CHF - daily chart with exponential moving averages - July 27, 2014

USD/CHF with the break of 200-day moving average resistance - July 27, 2014

USD/CHFwith daily Ichimoku cloud - resistance ahead - July 27, 2014.

USDCHF with MACDn - July 27, 2014.

USD/CHF chart showing the break of the strong resistances - July 13, 2014

USD/CHF weekly chart with price-action channel support - July 27 2014

USDCHF is expected to head of 38.2% retracement level - daily chart - July 27, 2014

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