01, October 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

We can see that Tenkan-sen and Kijun-sen merged and remain horizontal since the last week. Chinkou Span follows along the price chart, the current cloud is downward. The pair is below the cloud and the Kijun-sen line, which becomes a resistance level (0.9077). The estimated level of support is a January minimum of the Chinkou Span line (0.9030).

The daily chart analysis shows that the downward trend is slowing down. Short positions can still be opened with the goal around 0.9030.

The pair will return to the downward movement after the return under the Kijun-sen and the Cloud what is happening now. If the price returns above the Kijun-sen, the sell signal will be weakened and the further growth will be put under question.

Bollinger Bands indicator follows the price down. The bands are narrowing.
The MACD histogram is in a negative area.

Trading Recommendations

The pair resumed the downward movement after testing ерпу the low at 0.9090, trading in the range of 0.9126-0.9090.

We expect a consolidation at the current level 0.9040 with a slight bounce up. Should the pair continue falling it will go to 0.9025.