The current pivot: 0.8871

Overview:

• The USD/CHF pair has broken a major resistance at the level of 0.8810. It should be noted that the new resistance was calculated and found at the level of 0.8950 and it is now approaching it in order to test it. Also, you have to notice that the 0.8810 price has become a strong support on July 2, 2014. So, the USD/CHF pair will be restricted by the levels of 0.8810 and 0.8950; for that we expect this week a range of 140 pips approximately. Therefore it will probably start upward movement at this area and recover again. Thus, the market will indicate a bullish opportunity at the 0.8810 level, and it will be a good sign to buy at this spot with the first target at 0.8810. It will then continue moving towards 0.8910 for forming a double top today. Moreover, we look for the weekly target around the strong resistance around the spot of 0.8950 (new project for July 1-4, 2014). On the other hand, if a break of 0.8780 happens, then it will be a good location for placing a stop loss at the 0.8753 level.