13, August 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

SNB will stop supporting the franc, as soon as it starts raising rates, the vice-president of the Swiss central bank said in an interview to Le Matin Dimanche and SonntagsZeitung. "When the SNB decides to raise rates, some levels of protection for the currency of Switzerland will no longer be possible. Today, however, support for the euro / Swiss currency above the lower limit is an absolute priority, and it will continue for as long as need to be.

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 on a daily chart, 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.

Trading Recommendations

The eight-day minimum reached on Thursday 0.9174 is the last line of defense on the way to the base of 13th June 0.9129. The neutralizing candle which was formed last week was denied and the pair continued a 5-week downtrend wave which is aimed at long term growing the support line of the continuation figure “bullish pennant” at 0.9075. Resistance at 0.9250 limits the scope for corrective growth. Strengthening above Wednesday's high 0.9288 is needed to investors, who bet that the dollar growth could get some control over the situation.