USD/CHF
The pair has been in a downtrend for 24 months. Having been rejected at the 50 month Sma, it reached the high at 0.9972 (July 2012 high). Later again, the pair was rejected at the 50 month Sma on a closing basis (May & July 2013). The pair made a double bottom at 0.87 (March&May 2014). We expect the short-term bottom to be placed at the level of 0.8700. If the pair chops the double bottom, it can extend its fall up to 0.8568 (50.0 fib level & October 2011 low). The monthly Stochastic is indicating a positive divergence, so it could fly up to 0.9082 and 0.9225. This view is valid until it holds the double bottom at 0.87 levels. We are bearish only below 0.8700 for 0.8568, 0.8242 and 0.7712 levels. Until the pair breaches the level of 0.9225, we can expect new lows. The momentum indicator has bottomed at 0.7069, the lowest bottom ever formed for the past 15 years.
Monthly Key support- 0.8700
Monthly Key resistance- 0.9037
Intraweek view- cmp 0.8892
The pair opened its session in a bullish note. The pair has support at 0.8886 (16 hr low) and a resistance at the level of 0.8902. In Aisa's session, it is trading at 0.8894. For an intraday view, we recommend buying above 0.8902 for 0.8915, 0.8940 and 0.8960 levels. The pair looks weak below 0.8886 near the support levels at 0.8877 and 0.8857. If the pair breaks the previous support, it can hit the nearest strong support zone at 0.8830 and 0.8770 levels. The previous swing low at 0.8857 is seen to act as the intraweek support level.
Intraweek key support- 0.8857
Buy with sl 0.8886, strong momentum above 0.8902 . cmp 0.8895
Sell below 0.8870 targets 0.8857 and 0.8827
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Medium-term forecast and intraday recommendations for USD/CHF (July 03, 2014) . Thanks for your support on Medium-term forecast and intraday recommendations for USD/CHF (July 03, 2014)
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