FX.co ★ USD/CHF Technical Analysis for November 3rd - 4th, 2011.

Overview:

USD/CHF's subsequent sharp fall suggests that decline from 0.9315 a month ago and had resumed to 0.8567 (Strong support). It should be noted that the price has still been trapped between 0.9000 -- 0.8567 and the price has been set below strong resistance at the level of 0.8941. Aswell it is noting that the level of 0.8941 is coinciding with 50% of Fibonacci retracement levels on H4 chart and the pair has already formed a strong resistance at this level of 0.8941 and it is now approaching from it in order to test it. Therefore the Swissy will be a downside momentum is rather convincing and the structure of the fall looks is not corrective, in order to indicate a bearish opportunity below 0.8940 for that it will a good sign to sell below 0.8940 with a first target of 0.8740 and it will call for downtrend in order to continue bearish towards 0.8567 (0.0% of Fibonacci retracement levels on H4 chart). Furthermore, it also have to note that the price at 0.8570 will be possible formed double bottom and call for a strong support. So it will be saturation around 1.8570 to rebound the pair, aswell it will probably that the market is going to start showing the signs of bullish market. In other words, it will be a good sign to buy above 0.8570 with a first target of 0.8700 and continue towards 0.8822.