09, August 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview


The recent strengthening of the Swiss currency can cause a drop of USD/CHF to 0.90 in the not too distant future. But it will also allow the pair to make a strong rebound towards parity in the longer term. Four-week bearish wave with a peak on July 9. 9753 gained new force earlier on Wednesday when the consumer price index (CPI) in Switzerland in July fell into negative territory, as economists expected.

USD/CHF continues to work out a sell signal and resumed the downward movement. The current sell signal is strong and confirmed, as Chinkou span entrenched below the price, and the price is below the Ichimoku cloud.

Kijun-Sen and Tenkan-Sen are crossed in a descending "dead cross". Tenkan-sen is in the cloud, the Kijun-sen line is above Senkou Span B and is moving in a horizontal direction. The cloud is directed down. The downward movement will be continued as long as the price is below the Kijun-sen.

Bollinger Bands indicator follows the price down.
MACD is around zero histogram.

Trading Recommendations


Breakthrough to lows below 0.9230 targeted the pair to the level 0.9176 and the base 13 June 0.9129. The pair continues to five-week wave of falling, the target is 0.9075.

The resistance 0.9250 does not allow the correction to develop. The pair needs to consolidate above the maximum 0.9270 so that the investors that support the strengthening of the dollar, could gain control of the market.