USD/CHF Weekly Technical Report 14-18/1/2013

The pair dropped last week but couldn’t prove the end of the AB=CD bullish Harmonic Pattern`s effect, as the pair is still stable above 0.9080 levels. Despite that, we find that stabilizing below 23.6% correction at 0.9155 levels is considered negative and weakens the pattern’s affect. Therefore, we prefer to remain neutral for now  waiting for confirmations.

The trading range for this week is among key support at 0.8945 and key resistance at 0.9350.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.

Support 0.9100 0.9080 0.9060 0.9020 0.8945

Resistance 0.9135 0.9155 0.9200 0.9270 0.9320

Recommendation Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move