FX.co ★ Candlestick analysis of USD/CHF for 16/07/2010

USD/CHF currency pair has successfully broken through the support level at 1.0482 and continues the downward movement with the target at 1.0133.
As stated earlier at 4-hour chart USD/CHF currency pair formed Doji candlestick that comes as a downward signal. This candlestick formed after that earlier this currency pair did not manage to break through 1.1674 rate, then the trading pace was set by “bears”.
In addition, USD/CHF broke Fibonacci correctional level 23.6. Its successful break through confirmed that this point of view is the right one. Further on the downward trend there was formed a candlestick combination of “Bearish Engulfing” which approved once again the “bears” dominance.
If the currency pair makes a turnout or breaks through the resistance level at 1.0701, then long positions should be closed as it will target USD/CHF to 1.1000.