Technical analysis of USD/CHF for January 14, 2014

Overview:В В 

• The USD/CHF pair will set below the strong resistance at the level of 0.9066. Equally important, the price is still trapped between 0.9033 and 0.8977 as well as it has still been below 38.2% of Fibonacci retracement levels in H1 chart of the last week. As a result the price has already formed a strong resistance at this level of 0.9066 and it is now approaching it in order to test it. Therefore, the Swissy will get a downside momentum rather convincing and the structure of the fall does not look corrective, for indicating a bearish opportunity below the 0.9066 level for that it will a good sign to sell below 0.9066 with a first target of 0.8980 (this level is coinciding with the weekly pivot point for January 14 – 17, 2013) and it will call for downtrend in order to continue bearish towards 0.8933. Additionally, it also have to note that the price at 0.0.8933 will possibly form a strong support this week. So it will be saturation around 0.8930 to rebound the USD/CHF pair.

Intraday technical levels:

• R3: 0.9221
• R2: 0.9173
• R1: 0.9099
• PP: 0.9051
• S1: 0.8977
• S2: 0.8929
• S3: 0.8855

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