13, June 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The downward wave has led the pair to 0.9250 support level, located near the lower Bollinger band line. The pair is being consolidated around that mark. Lateral movement may prevail in the short-term, immediate resistance level is 0.9349.

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 0.9215, 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 - 0.9160. 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

We recommend buying the pair on kickbacks till it is above the support level 0.9205, which is the April lowest level. We can expect the correction to 0.9460/85 or even to 0.9540. However, the complete triumph of the bulls will be after the breakthrough of 0.9600.