FX.co ★ USD/CHF technical analysis for October 18, 2013

Overview:

Pair: USD/CHF.

• The price is probably going to form strong support at 0.9159 (below 61.8% of Fibonacci retracement levels in the H4 chart).
• It formed the last bearish wave for the last week, and the level of 0.9159 acts as strong resistance.
• Thus, it should be noted that the level of 0.9440 is strong resistance (Note: support became resistance as well as the ratio of 78% of Fibonacci equals 0.9443).
• The saturation is likely to take place around 0.8980, because this level is also the first strong support on October 18, 2013.
• A double bottom will be set at the level of 0.8967.
• Therefore, it is possible that the market will start showing bullish signs. The daily support is set at the level of 0.8980. In other words, buy deals are recommended above 0.8980/0.8967 with the first target seen at the 0.9050 level and further, at the 0.9122 level.
• A stop loss should be placed at 0.8945.