Candlestick analysis of the USD/CHF for December 03, 2010

On a 4-hour graph the USD/CHF is probably forming the combination of candlesticks Falling Three Methods, which indicates a downside movement.

This combination of candlesticks shows that the currency pair had been moving upwards for several weeks, but it made a rebound after a failure to break through 1.0066 level. This means that the bulls did not manage to solidify here and the bears started to increase their influence. The downside movement is also proved by the fact the currency pair has successfully broken the line of the uprising trend.
Nevertheless, it is recommended to wait until a bearish candlestick pattern is formed. In case the support level of 0.9850 is broken through, this will prove that the viewpoint is right and a decrease to 0.9667 should be expected.
It is recommended to place stop orders slightly above 1.0066 since the breakthrough this level will target the currency pair at 1.0280.

More analysis at instaforex.com