FX.co ★ The candlestick analysis of the USD/CHF for 01/06/2010

On a 4-hour chart, the USD/CHF currency pair had formed “Evening Star” combination of candlesticks before, which became a signal for downward movement. This combination of candlesticks formed after the currency pair had not managed to break the resistance level of 1.17 and the bears had set the trading tone.
If the USD/CHF breaks through the support level of 1.1450 it will confirm that this viewpoint is correct. In addition, the breach of this mark will lead to the decline to the next support level of 1.1271 with the further target to Fibonacci correction level of 61.8.
However, if the currency pair reverses and breaks out the resistance level of 1.17 positions should be reopened as in this case USD/CHF can move upwards to an 11-month high of 1.1740.