04, February 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The franc fell against the dollar after it had been known that US consumer spending reached a peak by 3 years after the day before the Federal Reserve reduced volumes of QE program again.

From a technical point of view the USD/CHF is trading at 0.9060. An important resistance is in the area 0.9120; the next is at 0.9180. The support is at 0.9020.

The northern movement remains until Kijun-Sen is located below the price. Tenkan-sen is crossing Kijun-sen upwards now. The cloud is neutral. The price is above the Cloud.

Bollinger bands still show an upward movement; its bands are broadening
MACD histogram is located in a positive zone. The histogram is growing.

Trading recommendations

The level 0.8904 was defended last week that opened the road to a lower maximum of 23 January – 0.9134. The short-term growth wave with 0.8904 has a target level of stretching Fibonacci 1,618 at the level 0.9108, which is slightly below the lower maximum 0.9134.

Together these levels provide a solid protection for the key maximum 0.9159, reached on January 21. The support 0.9000 and 0.8959 limits the room for correctional decline during the current session on Monday.