10, July 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

Retail sales in Switzerland (g/y) in May grew by 1.8% while the forecast was +3.7%, the previous value was 3.1%. The data show a slowing of consumer spending which would put pressure on the appreciation of the Swiss 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

The consolidation observed on Monday at the level 0.9666 is not expected to have much effect on the pair that under the strong short-term upward trend is approaching the level 0.9700.

Steady growth above 0.9700 will open the way for strengthening the lower high points at 0.9790, which is before the peak of 0.9839 on May 22. Risks of a corrective growth is limited by the level 0.9585.