12, August 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

Published ISS statistics on the U.S. labor market, added pressure on the world's reserve currency. Strengthening the position of the EU currencies against the U.S. dollar, putting pressure on the pair USD/CHF, which has an inverse correlation with respect to the pair EUR/USD.

USD/CHF continues to work out a sell signal and resumed the downward movement. The current sell signal is strong and confirmed, as Chinkou span entrenched below the price, and the price is below the Ichimoku cloud.

Kijun-Sen and Tenkan-Sen are crossed in a descending "dead cross". Tenkan-sen is in the cloud, the Kijun-sen line is above Senkou Span B and is moving in a horizontal direction. The cloud is directed down. The downward movement will be continued as long as the price is below the Kijun-sen.

Bollinger Bands indicator follows the price down.
MACD is around zero histogram.

Trading Recommendations

After proving the model “double figure” the 4-hour chart of the dollar-franc developed the movement towards the local downtrend. The support for the movement was made the field near the level 0.9175; the price formed a “spike” and then came up back.

We can expect a local upward correction to the field of resistance 0.9226, after which we may expect the movement towards the local downtrend and to the field of support between levels 0.9175 and 0.9129.