Technical analysis of USD/CHF for January 31, 2014

Overview:

• The price of USD/CHF pair has still been moving between 0.9063 and 0.9000 but it should noticed that the price has set below strong resistance at the levels of 0.9098 (0.9102: 78.6% of Fibonacci retracement levels in H1 chart). Moreover, it is worthy of note that these levels are coinciding between 50% and 61.8% of Fibonacci retracement levels in H1 chart and the pair has already formed a strong resistance at the level of 0.9098. So now it is approaching to it in order to test it. Therefore, the Swissy’s downside momentum is rather convincing and the structure of the fall does not look corrective. In order to indicate a bearish opportunity below 0.9100, it will a good sign to sell below 0.9100 with a first target of 0.9030. It will call for downtrend continuing falling towards 0.9001 to try to break the weekly pivot point. Thus, if the trend will be able to break the weekly pivot point then the market will lead to the price of 0.8960.

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