11, November 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

USD/CHF stalled in its fall last week.

The Franc has been little "too hot" since the last week - but it had no other options for movement against the weakness of the U.S. dollar. Meanwhile, the latest data show that the situation is getting better in the Swiss economy. The Switzerland economic system looks quite balanced and it will feel even better if exports will be at a good level as well in October. However, it is possible that in nominal terms, the export options decline slightly in the October as the September correction.

The pair has almost left the descending channel at a daily chart. Tenkan-sen is crossed with Kijun-sen forming a "Golden Cross". Chinkou Span crosses the price chart from the bottom up, the cloud remains growing. Tenkan-sen and Kijun-sen are following the price upwards. Tenkan-sen is directed upwards, Kijun-sen is horizontal.

The pair will return to the downward movement if it gets back below the cloud. If the price returns below the Kijun-sen, the buy signal will be weakened and the further growing will be put under the question.

Bollinger Bands are narrowing and directed upwards.
The MACD is in a positive area right now, its histogram is growing.

Trading Recommendations

After a quick growth we expect the pair to slow down and consolidate. A consolidation is possible with a pullback to 0.9180 and 0.9126. In the case of a return to growth, the pair will go to 0.9240. The second target is 0.9280.