USD/CHF: Technical analysis for May 14 – 15, 2013.

Overview: 

USD/CHF: It should be noted that the price is still trapped between 0.9605 and 0.9525 and that the price has set above strong support level at 0.9500 (0.9498: 100% of Fibonacci retracement levels on H1 chart). These levels coincide between 100% and 161.8% of Fibonacci retracement levels on H1 chart and the pair has already formed a strong resistance at this level of 0.9654 and it is now approaching it in order to test it. Therefore, the Swissie will have a downside momentum that is rather convincing and the structure of the fall looks not corrective, in order to indicate a bearish opportunity below 0.9654 for that it will be good to sell below 0.9650 with the first target of 0.9490 and it will call for downtrend in order to continue bearish pace towards 0.9440. Furthermore, it is also important that the price at 0.9435 will possibly form a strong support (0.9443: 78% of Fibonacci retracement levels on H1 chart). So there will be saturation around 1.9440 to rebound the pair, and it is possible that the market is going to start showing the signs of bullish market. In other words, it will be a good sign to buy above 0.9440 with a first target of 0.9580 and continue towards 0.9630.