FX.co ★ USD/CHF Intraday Technical Analysis & Trading Recommendations for January 23, 2012

Since February 2011, the USD/CHF pair hasn't touched these price levels.
The price level between 0.9400 - 0.9780 was mentioned to be considered as a strong resistance area, as 50% Fibonacci level of the whole swing down to 1.1700-0.7050 and previous multiple tops are located there.

Then we saw bearish reaction towards this resistance area, which had been successful in pushing the pair to break its mid-term bullish channel marked on the chart.
As we mentioned before, daily close below 0.9380 will open the way for 0.8585 in the long-term which may take some time for the pair to reach.

After a period of consolidation without enough steam to push higher and with obvious weakness of the bulls at this junction of the chart, we have a quite strong decline in price.
The pair managed to break through the lower limit of the bullish channel marked in blue, which is considered the 1st support line that the price had faced.
We have expected a "Double Top" reversal pattern with neck-line around 0.9400 that was mentioned to be a SHORT entry if visited again and price went so close to it at the weekly opening.
We have open SHORT position since last week and now we recommend selling USD/CHF at the retest of 0.9400-0.9444, with TP at 0.9400, 0.9350, 0.9305 and then 0.9250.
SL should be H4 closure above 0.9530.