FX.co ★ EUR/CHF: Technical Analysis for September 7, 2012

Forecast:

• At 1.2 a strong level (Support) will be formed providing a clear signal for buy deals with the target seen at the 1.254 level. Stop Loss is to be placed below 1.1850.

Overview:

EUR/CHF: The market is still showing signs of strength following the break above 1.2000. Therefore, it will turn to a strong support. In such case, a stronger rise should be seen towards 1.2524 resistance for confirmation. Moreover, the trend is still above 50% Fibonacci retracement level, thus it will be a good sign to buy above 1.2 and sell below 1.1850.

Types of Analysis:

• Fundamental analysis: the Swissie is also quoted amid the promise to “buy unlimited euro” in order to support this market.
• Technical analysis: on a daily chart the level of 1.2 coincides with the golden ratio (61.8% of Fibonacci retracement levels), then it indicates for a bullish market.
• Sentiment analysis: psychology level is at 1.2000, in this case one should be patient to keep the trade till the end.
• Money management: always invest 3% - 7% of the capital (composite) per all trades, always risk (Stop Loss) 1% - 5% of the capital per all trades, and always trade high risk ratio trade at least 1/2.
• Period: long term.

If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.