FX.co ★ USD/CHF: Technical Analysis for January 5 - 6, 2012.

Overview:

USD/CHF:

It should be noted that the price is still trapped between 0.955 and 0.917 and that the price has set above strong support level at 0.9227 / 0.9173 (0.9173: 61.8% of Fibonacci retracement levels on H4 chart). These levels coincide with 61.8% and 100% of Fibonacci retracement levels on H4 chart and the pair has already formed a strong resistance at this level of 0.955, and it is now approaching it in order to test it. Therefore the Swissie will have a downside momentum that is rather convincing and the structure of the fall looks non-corrective, in order to indicate a bearish opportunity below 0.955 for that it will be good to sell below 0.955 with the first target of 0.943 and it will call for downtrend in order to continue bearish pace towards 0.9331. Furthermore, it is also important that the price at 0.9227 will possibly form a strong support (0.9173: 61.8% of Fibonacci retracement levels on H4 chart). So there will be a saturation around 1.918 to rebound the pair, and it is possible that the market is going to start showing the signs of bullish market. In other words, it will be good to buy above 0.918 with a first target of 0.93 and continue towards 0.943.