FX.co ★ EUR/CHF candlestick analysis for June 13, 2011

In a 4-hour graph the EUR/CHF currency pair has dropped after it could not break the resistance level near 1.2317 again. As mentioned before, if the support level 1.2055 is broken, long positions should be closed as its break will target the pair to 1.2000.
Earlier in a 4-hour graph the EUR/CHF pair formed a Piercing Line candlestick combination indicating a bullish signal.
This candlestick combination shows that the pair was demonstrating downside movements for several weeks after it failed to break the resistance level 1.3238. However, it reversed near 1.2055, which means that the bears could not solidify here and the bulls started to increase their influence.
Break of the resistance level 1.2317 and Fibonacci correction level 23.6 will prove this point of view.
In this case we should expect growth to the resistance level 1.2484 where the Fibonacci correction level 38.2 is also located.