FX.co ★ Technical analysis of USD/CHF for July 24, 2014

Overview:

• The price of the USD/CHF pair is supposedly going to form strong support at the level of 0.8987 (78.6% of Fibonacci retracement levels in the H4 chart). It formed the last bearish wave last week. It should be noted that the price is going to form a new double bottom at this level, but the level of 0.8997 acts as strong support because it is representing the first weekly support this week. So, the saturation is likely to take place around 0.9000. 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 the other words, buy deals are recommended above 0.8987 with the first target seen at the 0.9033 level and further at the 0.9050 level to test the weekly resistance one. Thus, it also should be noted that the level of 0.9050 is going to form a minor resistance. Additionally, the level of 0.9085 will act as a major resistance.