05, June 2013

USD/CHF (a 4 hour chart)

General overview

The pair continues its falling which was began on May 22. The pair a bit recovered after falling during the trading tested the 0.9600 level. Yesterday, the pair consolidated at 0.9475, but then went down, reaching the trading session minimum at 0.9450.

The pair continues working out a sell signal. The current sell signal is confirmed and strong as Chinkou Span entrenched below the price chart and the price is below Ichimoku cloud.

If the price fixes below the first target a new target will be available for the downward movement. The downward movement will be as long as the price is below Kijun-sen. If the price fixes above this level the sell signal would weaken and may be cancelled.

Bollinger Bands show a continued downward movement, the bands are broadening.
MACD is in a negative area and keeps going down.

Trading recommendations

The pair fell to the support at 0.9411 on strong downward momentum of the recent trades. A new pricing model is formed inside the price channel 0.9788/0.9564, but it is not very clear. The indicators are directed downwards, suggesting new low levels.

The uptrend line, however, remains unchanged, and the further price moving is limited by the moving average that slightly lowers the likelihood of negative potential.

As a result, we expect a strong support at 0.9540-61 when the price moves from 0.9200 to 0.9840, the pair may bounce off it to go to the resistance at 0.9564.