Technical analysis of USD/CHF for May 6, 2014

Overview:

The USD/CHF pair is going to set strong resistance at the level of 0.8820 and support at 0.8710 today because the price is still moving between 0.8810 and 0.8735. So, we expect a range of 75 pips on May 6, 2014. Also, the USD/CHF pair has still been below 50% of Fibonacci retracement levels in H1 chart. As a result, the price has already formed the strong resistance at this level of 0.8820 and it is now approaching it in order to test it and the RSI is still calling for the bearish market.

Consequently, the USD/CHF pair will be in a downside momentum rather convincing and the structure of the fall does not look corrective, for indicating the bearish opportunity below the 0.8820 level, for that it will a good sign to sell below this level with the first target of 0.8760 and it will call for downtrend in order to continue bearish towards 0.8710. Additionally, the price will try to test the double bottom at 0.8698. On the other hand, the stop loss should always be taken into account, thus it will of the wisdom to set your stop loss at the price of 0.8860.

Intraday technical levels:

Date: 6/05/2014

Pair: USD/CHF

R3: 0.8895 R2: 0.8867 R1: 0.8822 PP: 0.8794 S1: 0.8749 S2: 0.8721 S3: 0.8676