03, June 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

Bears tested the level 0.9520. The Switzerland economic barometer data (KOF) was published on Friday. It did not significantly affect the quotes, but it should be noted that the data was better than expected by experts. The price reversal is possible should we get positive news from the U.S..

The first target is 0.9520. If this barrier is overcome we can expect further downward movement to the level 0.9475. The levels 0.9560, 0.9640 are the nearest support.

The downward movement is maintained as long as the price is below the Kijun-Sen. Kijun-Sen and Tenkan-Sen are directed downwards. Chinkou Span is lower the price, which means the bearish mood of traders.

Bollinger Bands are broadening, confirming market volatility.
MACD is turned down signaling a downward price movement.

Trading recommendations

It is advised to consider short positions with the first target - 0.9475. But first, the pair needs to consolidate at 0.9540.

If the price breaks through the level 0.9560 we advise you to buy with take-profit at the level 0.9640. An alternative scenario is to sell if the level 0.9520 is broken with take-profit at 0.9475.