FX.co ★ Technical analysis of USD/CHF for October 21, 2014

Overview:

• The USD/CHF pair is going to set strong resistance at the level of 0.9525 and the minor resistance has set at 0.9485. The supports set at levels of 0.9400 and 0.9360 respectively. Also, it should be noted that the weekly pivot point has already set at the price of 0.9440. Equally important, the price is still moving around the key level at 0.9494 today. Moreover, the USD/CHF pair has still been below 50% of Fibonacci retracement levels since October 15, 2014. As a result, the price has already formed the strong support at this spot of 0.9400 - 0.9360 and it is now approaching it in order to test it. Another thought, the RSI calls for an uptrend. Therefore, the USD/CHF pair will get an upside rather convincing momentum and the structure of the fall does not look corrective. Indicating a bullish opportunity above the 0.9400 level, it will be a good sign to buy above 0.9400 with a first target of 0.9485 (this level coincides with weekly resistance 1) and it will call for an uptrend to continue bullish towards 0.9525. The level of 0.9525 coincides with the ratio of 50% Fibonacci retracement levels.