USD/CHF: technical analysis for August 22, 2013

Overview: 

USD/CHF:  

It should be noted that the price has still been trapped between 0.9300 and 0.9250. The price has been set below strong resistance at the level of 0.9367 (78% of Fibonacci retracement levels in H1 chart). Moreover, it is worth noting that these levels are coinciding between 23.6% and 50% of Fibonacci retracement levels in H1 chart and the pair has already formed strong resistance at this level of 0.9367 and now it is approaching it in order to test it, if the price could break the weekly pivot point at the level of 0.9292. 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 0.9367 it will be a good sign to sell below 0.9370 with the first target of 0.9305 and it will call for downtrend in order to continue bearish towards 0.9216 next days in order to form double bottom at the level of 0.9216 . Furthermore, it should be noted that the price at 0.9200 will possible form strong support (it should also note that the level of 0.9188 is the weekly support 1 for August 19 – 23, 2013). So it will be saturation around 1.9200 to rebound the pair, as well probably the market is going to start showing signs of bullish market. In other words, it will be a good sign to buy above the weekly pivot point at 0.9200 with the first target of 0.9292 and continue towards 0.9355.