FX.co ★ USD/CHF candlestick analysis for July 28, 2011

In a 4-hour graph the USD/CHF currency pair is demonstrating further downside movement by refreshing all-time lows and is testing the support level 0.8000 at the moment.
Earlier in a 4-hour graph the USD/CHF formed a Shooting Star candlestick indicating downside movement confirmed further.
This candlestick shows that the USD/CHF was demonstrating upside movement for several days, but rebounded after a fail to break 0.8946. At the next attempt of the bulls to fixate above 0.8900 the bears started to increase their influence, which resulted in formation of this candlestick.
Successful testing of the support level 0.8747 proved this point of view. Break of 0.8458 which is also the 61.8 Fibonacci projection 0.9342-0.8552 to 0.8946 targeted the pair to 0.8350. Break of the 0.8350 level caused downside movement to 0.8158 where the Fibonacci projection level 100.0 is located. Its break might target the pair to a psychologically relevant support level 0.8000.
Stop loss should be placed slightly above the 0.8277level as a break of this resistance level will target the pair to 0.8400.