FX.co ★ USD/CHF: Technical Analysis for March 1, 2012.

Overview:

USD/CHF:

It should be noted that the price is still trapped between 0.9300 and 0.8950, and that the price set above a strong support level at 0.8931 (00% of Fibonacci retracement levels on H4 chart). These levels coincide with 38.2% and 23.6% of Fibonacci retracement levels on H4 chart and the pair has already formed a strong resistance at this level of 0.91, 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 non-corrective, in order to indicate a bearish opportunity below 0.9116. It will be good to sell below 0.9116 with the first target of 0.9025 and it will call for downtrend in order to continue bearish pace towards 0.8955. Furthermore, it is also important that the price possibly formed a strong support at 0.8940 (0.8931: 38.2% of Fibonacci retracement levels on H4 chart). So there will be saturation around 0.8940, and it is possible that the market will start showing the signs of a bullish sentiment. In other words, it will be good to buy above 0.8940 with the first target of 0.9000 and continue towards 0.9110.

Forecast:

At 0.91 a strong level will be formed, thus it will be a good sign to sell at this level with the target at 0.8955, stop loss should be placed above 0.9155.