Technical analysis of USD/CHF for February 20, 2014

 

Overview

The price of the USD/CHF pair is supposedly going to form strong support at the level of 0.8856. As well as, it should be noted that the price is going to form double bottom at this level in H1 chart. Accordingly, we expect this spot will form the last bearish wave this week. Equally important, the level of 0.8873 acts as strong support because it is representing the first weekly support for February 20-21, 2014. For that we conclude that the saturation of the USD/CHF pair is likely to take place around 0.8860.

Moreover, the RSI indicator is also going to call for the bullish market at the same levels we indicated above. Therefore, it is possible that the market will start showing bullish signs. In other words, buy deals are recommended above the level of 0.8860 with the first target seen at the 0.8900 level and further at the 0.8955 level to test the weekly pivot point.  In consequence, it also should be noted that the level of 0.8955 is going to form a minor resistance (50% of Fibonacci retracement levels) this week.