FX.co ★ USD/CHF technical analysis for November 5, 2013

Overview:

• It should be noted that the price of the USD/CHF pair has still been trapped between 0.9080 and 0.9110, as well as the price has been set below strong resistance at the levels of 0.9170 (50% of Fibonacci retracement levels in H4 chart). Additionally, it is worth noting that these levels coincidу between 50% and 38.2% of Fibonacci retracement levels in H4 chart; thereupon the pair has already formed a strong resistance at this level of 0.9170, and it is now approaching it in order to test it. Therefore, the possibility that Swissy will have a downside momentum is rather convincing and the structure of the fall looks not corrective. In order to indicate a bearish opportunity below 0.9170, in consequence it will a good sign to sell below 0.9170 with the first target of 0.9100. It is equally important that it will call for downtrend in order to continue bearish trend towards 0.9040.
• On the other hand, it is also worthy of note that the price at 0.9020 will possibly form strong support (23.6% of Fibonacci retracement levels in H4 chart). Accordingly, there is likely to be a saturation around 1.9025 to rebound the pair. Furthermore, it is possible that the market is going to start showing the signs of bullish market. Hence, it will be a good sign to buy above 0.9020 with the first target of 0.9090 and continue towards 0.9155.