11, December 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

FRANK remains under pressure amid a weakening dollar against European currencies because of the uncertainty about the prospects for reducing the Fed asset purchases. The representative of the FED - Bullard - declared on Monday that one of the reactions to positive economic data from the U.S. may be a slight reduction in the asset purchase program at the next meeting.

Tenkan-sen is crossed with Kijun-sen having formed a "Dead Cross". Chinkou Span crosses the price chart from the bottom up. Tenkan-sen and Kijun-sen are following the price downwards. The Cloud is descending.

The pair will return to the upward movement if it gets back above the cloud. If the price returns above the Kijun-sen, the sell signal will be weakened and the further falling will be put under the question.

Bollinger Bands are directed downwards right now. Its bands are broadening. The MACD is at the negative zone approaching to the zero level.

Trading Recommendations

After a sharp drop last week, the pair is still close to 0.8891. This level was the minimum of 2013 and was reached in October. There is a risk of reduction to 0.8828 in the short term.