04, September 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The downward momentum of the pair significantly weakened. The stabilization gives reason to hope that the bulls will gather their forces and turn in the direction of the upper boundary of the sprawling range. The short-term technical picture looks encouraging, given the signs of the formation of the base and the current consolidation above 0.9280.

Tenkan -Sen and Kijun -Sen are crossed in a descending "dead cross " on the daily chart. Still the price is growing at hour time-frame. The growth was triggered by the unemployment rate in the Republic of Germany. The pair is above the cloud, Tenkan -Sen and Kijun -Sen are directed upwards. The Cloud is growing.

The first target for the growth is 0.9344. Should the pair consolidated above the first target it can go to the 2nd resistance level at 0.9410.

The pair will return to the downward movement after the return under the Kijun -sen. If the price consolidates above the Kijun -sen the sell signal will be weakened.

Bollinger Bands indicator follows the price up. The bands are narrowing.
The MACD histogram is in a positive territory and continues slowly to grow sending a buy signal.

Trading Recommendations

The pair is growing. The first target is 0.9344. Should the pair consolidate at this level it will go to 0.9410.