05.02.201612:44 Forex Analysis & Reviews: Technical analysis of USD/CHF for February 05, 2016

Overview:

• The USD/CHF pair has dropped sharply from the level of 1.0020 towards 0.9910. Now, the price is set at 0.9915 to act as a daily pivot point. It should be noted that volatility is very high for that the USD/CHF pair is still moving between 1.0020 and 0.9841 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.0075 and 1.0020, which coincides with the 61.8% and 50% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CHF pair is continuing in a bearish trend from the new resistance of 1.0020/0.9965. Thereupon, the price spot of 1.0020/0.9965 remains a significant resistance zone. Therefore, a possibility that the USD/CHF pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.0020, sell below 1.0020 or 0.9965 with the first targets at 0.9896 and 0.9785 (the double bottom is seen at 0.9785). However, the stop loss should be located above the level of 1.0075.