11, June 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The pair is being corrected after a last week falling. The pair reached the Bollinger midline from which most likely a downward movement would resume.

The sell signal is strong and confirmed. Chinkou Span is located below the price, the price itself is below the Ichimoku cloud. So now the goal for the downward movement is the level 0.9270, which is the price reached, but not worked out. If the pair manages to consolidate below this level it will open the road to a new target for the downward movement - 0.9215. The downward movement will be in force until the price is below the Kijun-Sen.

Bollinger Bands confirms the continuation of the downward movement its bands widen and are directed downward. It is recommended to consider short positions.

MACD is in a negative area, signaling a downward direction.

Trading recommendations

The pair is finished the correction. We believe that the pair will not go beyond 0.9410. A short consolidation at this level is possible.

The general trend is bearish. The first target of the downward movement is 0.9344. Should the price consolidate at this level it will continue to move to 0.9270.