29.07.201109:26 Forex Analysis & Reviews: USD/CHF candlestick analysis for July 29, 2011

Long-term review

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In a 4-hour graph the USD/CHF currency pair is consolidating near a psychologically relevant support level 0.8000.
Earlier in a 4-hour graph the USD/CHF formed a Shooting Star candlestick indicating downside movement confirmed further.
This candlestick shows that the USD/CHF was demonstrating upside movement for several days, but rebounded after a fail to break 0.8946. At the next attempt of the bulls to fixate above 0.8900 the bears started to increase their influence, which resulted in formation of this candlestick.
Successful testing of the support level 0.8747 proved this point of view. Break of 0.8458 which is also the 61.8 Fibonacci projection 0.9342-0.8552 to 0.8946 targeted the pair to 0.8350. Break of the 0.8350 level caused downside movement to psychologically relevant support level 0.8000. Its break might target the pair to 0.7900.
Stop loss should be placed slightly above the 0.8277 level as a break of this resistance level will target the pair to 0.8400.

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