Technical analysis of USD/CHF for August 12, 2014

Overview:

• The USD/CHF pair is going to set strong resistance at the level of 0.8866 and support at 0.9125. Equally important, the price is still moving between 0.9100 and 0.9066. Also, the USD/CHF pair has still been below 38.2% of Fibonacci retracement levels since January 13, 2014. As a result, the price has already formed the strong resistance at the level of 0.9125 and it is now approaching it in order to test it again. Therefore, the Swissy will get a downside convincing momentum and the structure of the fall does not look corrective. It indicates a bearish opportunity below the 0.9125 level. So, it will be a good sign to sell below 0.9125 with the first target of 0.9040 (this level coincides with the daily pivot point) and it will call for a downtrend in order to continue bearish move towards 0.8950 in the coming days. On the other hand, the stop loss should always be taken into account. Thus, it will be wise to set your stop loss at the price of 0.9155.

Intraday technical levels:

Date:12/08/2014

Pair:USD/CHF

• R3: 0.9148
• R2: 0.9125
• R1: 0.9109
• PP: 0.9086
• S1: 0.9070
• S2: 0.9047
• S3: 0.9031

The material has been provided by InstaForex Company – www.instaforex.com