USD/CHF technical analysis for June 26, 2013

 

Overview: 

USD/CHF’s subsequent sharp fall suggests that decline from 0.9579 had resumed to test 0.9382. Therefore, the pair has already formed a strong support at the psychological level of 0.9130. It should be noted that the price has still been trapped between 0.9310 and 0.9220. Moreover, it couldn’t close below this psychological level, while the price has been set above it for two weeks, hence the market started showing bullish signs. Consequently, it is a good sign to buy above 0.9130 with the first target of 0.9118 (Pivot point), and continue towards 0.9490. However, If the trend breaks this level and closes below it (0.9480), it will be a downside momentum. The structure of the fall does not look corrective, hence the market will indicate a bearish opportunity below 0.9480, subsequently the support will be become a resistance. It will be a good sign to sell below 0.9480 with the target at 0.9420. Further, it will be resumed towards 0.9132 in order to form a double bottom.