15, May 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The pair continues to grow to the 4th April maximum 0.8953 after it made an attempt to break above the 0.89. The strong recovery from 0.8703 reaction low has the potential to test the maximum range 0.8953. The 0.8698-0.8703 low form medium double bottom. However, the break above 0.8953 is needed to confirm an important turning figure, but 0.8953 maximum will vigorously defend itself. The 0.8875 and 0.8854 support must be broken to trigger a downward consolidation towards 0.8808.

The first support is 0.8890, the next one is 0.8850. The first resistance is 0.8920, the next is one 0.8950.

The price is above the Cloud and above Chinkou-Span, that’s a strong and confirmed buy signal.

The upward movement remains until Kijun-Sen is under the price.

MACD is in the positive area that supports the growth.

Trading Recommendations

The pair managed to break the downward resistance line and tested the 0.8907 level. The pair still cannot grow above and the U.S. dollar is trying to consolidate above the broken resistance. If it succeeds, we should expect 0.8952 resistance testing. The fall below 0.8861/55 would weaken the "bullish" impulse.