02, August 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The dollar remains under a moderate pressure against the Swiss currency on expectations that the outcome of the next meeting of the Federal Open Market Committee will confirm again that it does not hurry to the reduction of quantitative easing, and this process will be linked to the rate of economic growth.

Last week the dollar/franc also corrected to the critical line, and even overcame it. The correction is over now and it is now trying to resume an upward movement.

The current sell signal is confirmed and weak. The pair has resumed growth, finding a bottom at 0.9270. The pair is in the trading range of 0.9344-0.9410.

On the daily chart the USD/CHF failed to break 0.9344 level. 0.9270 level acts as a strong support. Kijun-Sen and Tenkan-Sen form a "dead cross". Tenkan-sen and Kijun-sen are directed upwards. The Cloud is still going down.

Bollinger Bands indicator formed a fixed downward channel but its bands are turning up.
MACD histogram shows a rather slow growth.

Trading Recommendations

The price needs to break 0.9344 to return to an upward movement.

The rapid fall from a high 0.9338 will continue the main medium-term downtrend to 0.9191 support area, which is the last frontier before the June 13 reaction low at 0.9128. 0.9344 will become vulnerable only after breaking above 0.9311.