14, January 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

Frank strengthened significantly versus the dollar. The dollar fell against most currencies after the U.S. Department of labor report showed in December the minimal employment growth for the past two years. It weakened the speculations that the Federal reserve will continue to collapse the QE program.

From a technical perspective the USD/JPY returned to 0.9000 after the employment report and is trading in the area of 0.9024 now. The nearest resistance remains at 0.9100 and 0.9125. The next resistance is at 0.9180 (the maximum of November, 20). The return below 0.9000 will return the market to the support at 0.8980, below at the area of 0.8930/20.

The price is directed dowwards though it is corrected. Chinkou Span is above the price. The price is above the cloud.

The northern movement is remained until Kijun-Sen is located below the price. Tenkan-sen is crossing Kijun sen downwards. The cloud is growing.

Bollinger bands still show an upward movement though the indicator started turning down.
MACD histogram is located in the positive zone. The histogram is descending.

Trading recommendations

The northern movement comes to "naught." We expect the correction toward the cloud to be continued. The pair may reach 0.8990. Should the pair break the Cloud down USD/CHF will return to the southern movement, the first target is 0.8950. If the pair bounces from the Cloud Up the targets are 0.9090 and 0.9130.