13, February 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The US dollar has slipped at the American session after the new Fed chairman Janet Yellen’s speech to the Congress. She stated that the labour market situation was improving, however, this process was far from complete: the likely tapering of QE would continue with a moderate pace; the USD/CHF pair would remain at the same range.

The support is at the level 0.8940 (session minimums). Below losses may lead to USD increase to 0.8930 (minimums of January 29). Return above 0.9100 will make at target of growth 0.9140/50 and 0.9180 (maximums of November 20).

The pair is below the Cloud that cancels the northern movement. Tenkan-sen is crossing Kijun-sen downwards. The cloud is decreasing. The southern movement remains until Kijun-Sen is located above the price.

Bollinger bands still show a downward movement; its bands are broadening confirming the sell signal.
MACD histogram is in a negative zone. The histogram is descending.

Trading recommendations

“Bears” on the dollar/franc repeatedly tried to break through the support around 0.8941, but bids of the “bulls” were not allowed the pair mentioned. At the end the pair was bought, that enabled it to climb up to 0.8987. However the pressure on the dollar remains, as well as the chances to fall down to 0.8900. The growth and the ability to hold around 0.9000–0.9020 will indicate the resumption of the upward dynamics.