08, July 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The Consumer Price Index of Switzerland (m/m) grew by 0.1% in June, against forecasted -0.1%. This data shows light escalation of inflationary expectations in the country that could lead to a tightening of monetary policy in the medium term. However, most likely Friday's news on the U.S. labor market will support the world's reserve currency.

The current buy signal is confirmed and strong, as Chinkou span is above the price.

The first target for the growth 0.9600 has been worked out. The upward movement will be as long as the price is above the Kijun-Sen, if the price is fixed below the Kijun-sen, the buy signal will be weakened and the further upward movement is likely to be canceled.

Chinkou Span is above the price that confirms the current buy signal and indicates a bullish sentiment of the pair. Kijun-Sen and Tenkan-Sen are directed upwards.

Bollinger Bands indicator formed a fixed upward channel.
MACD is growing in a positive area.

Trading Recommendations

There is a risk of corrective falling towards 0.9410. Recovery above 0.9495 will focus the market on the monthly maximum 0.9530, reached on Tuesday. There is a possibility of further growth towards 0.9680.