FX.co ★ USD/CHF: Technical analysis (at the weekly pivot point: 0.9130) for February 6, 2013

Range: 271 pips (weekly).

Overview:

USD/CHF: It is necessary to consider that the price is still located between the points of 0.9012 and 0.9110 (it is currently around the 0.9080 price), i.e. above the strong resistance level of 0.9130. The pair has already formed a strong resistance at the level of 0.9130 and is presently approaching the further testing. Therefore, the Swissie is expected to go downwards following the structure which does not look corrective, indicating a bearish opportunity below the 0.9130 level. Sell deals are recommended below 0.9130 with the first target seen at the 0.9040 level. Thus, the downtrend is likely to continue the bearish movement towards the 0.8970 level. Moreover, it is crucial that the price has probably formed a strong support at 0.8960. The saturation is likely to take place around 0.8955 (0.8960: the weekly Support 1). Therefore, it is possible that the market will start showing the signs of bullish behaviour. In other words, Buy deals are recommended above 0.8960 with the first target seen at the 0.9055 level and if this level is broken, then the pair will go further to the 0.9130 level (the weekly pivot point). It should be noted that the resistance becomes a support after it is broken.

Strong levels:
0.93830, 0.93110, 0.9127
0,88410, 0.89490, 0.9027

Volatility: 248.14, therefore the market indicates higher volatility
Volatility formula:
Variation = Average * (Higher - Lower)

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