10, September 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

Consumer prices fell 0.1% in August, although the year-on-year CPI remains at 0% - the highest since September 2011. The core inflation remains well below 1 percent threshold price stability, justifying too soft stance and commitment to the task, at least 1.20 on EUR/CHF.

Industrial production fell by 1.1% in the second quarter, after rising 3% in the first quarter. New orders fell by 4.2%, while sales dropped by 0.8 percent.

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 stopped growing returning back to the Cloud. If the falling remains the pair will break the Cloud having returned back to the downward movement. The first target is 0.9270. Should the pair consolidate at this level it will go to 0.9215.