Technical analysis of USD/CHF for January 28, 2014

Overview:

• The price of the USD/CHF pair is supposedly going to form strong support at the level of 0.8903 (00% of Fibonacci retracement levels in the H4 chart, it had formed the last bearish wave last week. It should be noted that the price is going to form a double bottom at this level, but the level of 0.8845 acts as strong support because it is representing the first weekly support for January 28-31, 2014. So, the saturation is likely to take place around 0.8850; moreover, the RSI indicators are also going to call for an uptrend at the same level we indicated above. Therefore, it is possible that the market will start showing bullish signs. In other words, buy deals are recommended above 0.8850 with the first target seen at the 0.8933 level and further at the 0.9000 level to test the weekly pivot point. Thus, it also should be noted that the level of 0.9001 is going to form a minor resistance (38.2% of Fibonacci retracement levels) on January 28, 2014. Additionally, the level of 0.9098 will act as a major resistance.

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