09, October 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The bulls on the dollar/ franc have been making desperate attempts to keep the pair from further falling, the price stabilized near 0.9060 still looks extremely uncertain.

The U.S. currency can boast the location of investors given the political crisis in the U.S., and the slightest attempt to rise above attracted a steady interest in the sale. Large Offers can be seen in the area 0.9040.

Some traders believe that a break up can be a catalyst for a correction while others believe that the improvement of the situation can only happen in the case of repatriation and stabilization of the ISD/CHF above 0.9200.

A dealer of one of Britain's banks commenting the dynamics of the pair said that the short-term risks are biased in favor of testing support at 0.89, but we can also talk about the formation of peaks and the potential for movement at least to 0.86.

We can see that Tenkan-sen and Kijun-sen merged and remain horizontal since the last week. Chinkou Span follows along the price chart, the current cloud is downward. The pair is below the cloud and the Kijun-sen line, which becomes a resistance level.

The pair will return to the downward movement after the return under the Kijun-sen and the Cloud what is happening now. If the price returns above the Kijun-sen, the sell signal will be weakened and the further growth will be put under question.

Bollinger Bands indicates further growth. The MACD histogram is oversold, its volume decreases, soon it can go into the overbought zone forming a buy signal.

The MACD histogram is in a negative area.

Trading Recommendations

We recommend to open long positions from the current level with take-profit at levels 0.9094 and 0.9136. Short positions can be opened in the event of a price reversal, profits can be fixed at the level of 0.9052.