USD/CHF: Weekly Technical Levels for October 1 - 5, 2012

Weekly Technical Levels:

Tip (s): • R3 and S3 can be both regarded as clear indicators of the maximum range of extreme volatility, though it is possible to pass them through.
• Pivot lines can be applied well on the sideways markets, as the prices will probably be located between R1 and S1 lines.
• Within a strong trend, the price is expected to be lower than the pivot point line and will continue the movement.
• If the breaking news are released they may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 & R3 or S2 & S3.

Observation (s):

• If the trend is of an upside character, then the strength of the currency will be defined as following: the USD is an uptrend and the CHF is a downtrend.
• Fibonacci retracement is used to determine accurate psychology level of support and resistance. The period of time should be taking into account.
• Fibonacci is in a range trader: it looks like the trend is trapping and going up or down, if you sell or buy for a long term in this period, sure you'll lose your profit.
• Stop Loss should NEVER exceed your maximum exposure amounts.
• As a rule, the market has a high volatile if the last day had a huge volatility.

If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.