While we are patiently waiting for FOMC meeting we need to know that interest rate differential between US and Switzerland definitely favors the dollar. Having a record unemployment rate at 5.1 % FOMC is a step closer to rate hike and recent Yellen comments suggested that China turmoil had no significant impact on FED’s plans about the hike.
USDCHF is buy the dips mode. Technically we can spot V shaped reversal which has been very strong to the extent that it is forming a giant inverted head and shoulders pattern on H4 chart. We should be focused on a retracement towards 0.9630-40 zone ( 78.6, previous buyers, L3, X cross ) If the retracement happens we could take a long position with a good r:r . Inner trendline is providing support so 0.9595 should hold (inner trend line, 88.6).
Rejection from POC targets 0.9760 and H4 close above the level will target 0.9820.
USDCHF 4 Hour Chart