Technical Analysis 2017.08.31 – USD/JPY USD/CHF Just a Little More Risk?

USD/JPY
It seems as though USD/JPY is in correction.

B’s higher level wave c is forming . Wave (ii) of c, seems to be pointing towards a local correction, having reached its end. If this speculation is validated the currency pair has the potential to fall to 107.50sooner than later. 110.95 is deemed as critical.


USD/CHF
Current trend
US gained against CHF yesterday, August 30, showing that the bullish trend has inertia. US macroeconomic statistics bolster the growth of the dollar, while Swiss data was murky at best.

US GDP for the second quarter went up by 3.0% YoY compared to the last 2.6%. Private sector jobs did better than the previous month, reaching 237K from 201K according to the ADP report.

Today (Aug. 31st ) traders will be looking for data on personal income and expenditure for July at 12:30. Jobless claims and housing sales will also be points of interest.

Support and resistance
In the D1 chart, the Bollinger Bands show a relatively flat dynamic. We can see the range of the currency pair . MACD histogram is over the signal line a positive indicator for the pair. Stochastic is also holding an its upward vector, but it is likely overbought at this point – due to its rapid growth.

USD/CHF Resistance levels: 0.9643, 0.9666, 0.9695, 0.9724, 0.9770.
USD/CHF Support levels: 0.9600, 0.9575, 0.9548, 0.9496.


This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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