15, October 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The current levels are very attractive for long-term purchases of the American currency. We believe that the upward trend should be continued. Congress will not accept a technical default, which stimulates the pair to grow. Morgan Stanley has warned that the possibility of implementation of bullish strategies on the dollar should be seen against the low-yielding currencies.

The price is above the cloud now and is growing. We can see that Tenkan-sen and Kijun-sen are directed upwards. Chinkou Span is above the price, the cloud is growing.

The pair will return to the downward movement if it gets back under the cloud. If the price returns below the Kijun-sen, the buy signal will be weakened and the further growth will be put under question.

Bollinger Bands indicates further growth. The MACD histogram is growing as well.

The MACD histogram is in a negative area.

Trading Recommendations

We can go long if the price break the level 0.9075. Short positions will be relevant only if the pair consolidates below 0.8970.