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08.11.2012 04:10 PM
USD/CHF: Technical Analysis for November 8, 2012

Forecast:
Strong level (Resistance) will be formed at 0.9500 providing a clear signal for sell deals with the target seen at 0.9390 level. Stop loss is to be placed above 0.9573.
Strong level (Support) will be formed at 0.9370 providing a clear signal for buy deals with the target seen at 0.9475 level. Stop loss is to be placed below 0.9325.

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Overview:
USD/CHF: It is necessary to consider that the price is still located between points of 0.9380 and 0.9420, i.e. above the strong resistance level of 0.9500. The pair has already formed a strong resistance at this level of 0.9500 and is presently approaching to the further testing. Therefore, the Swissie is expected to go downwards following the structure which does not look corrective and indicating the bearish opportunity below 0.9500 level. Sell deals are recommended below 0.9500 with the first target seen at 0.9420 level. Thus, the downtrend is likely to continue the bearish movement towards 0.9390 level. Moreover, it is crucial that the price has probably formed a strong support at 0.9370. The saturation is likely to take place around 0.9370/0.9314. Therefore, it is possible that the market will start showing the signs of a bullish behavior. In other words, buy deals are recommended above 0.9314 with the first target seen at 0.9370 level and if the weekly pivot point (0.9364) is broken successfully, then the pair will go further at 0.9475 level. It should be noted that the resistance becomes a support after it is broken. 

Weekly Pivot Points:
R3: 0.9588
R2: 0.9501
R1: 0.9451
PP: 0.9364
S1: 0.9314
S2: 0.9227
S3: 0.9177

Mourad El Keddani,
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