09, September 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The publications of strong macroeconomic indicators in the USA and Europe have led to a decrease in demand for Swiss franc, USD/CHF got stronger and there is a good opportunity to go short now.

The dollar/franc continues to workout "a golden cross". The correction ended just after overcoming the first level of the resistance. The current buy signal is confirmed and strong as Chinkou Span is above the price chart, and the price is down above the Ishimoku Cloud.

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 pair is above the cloud, Tenkan -Sen and Kijun -Sen are directed upwards. The Cloud is growing.

The first target 0.9410 is broken. Should the pair consolidate above the first target it can go to the resistance level at 0.95.

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 0.9410. Should the pair consolidate at this level it will go to 0.95.