17, February 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The Swiss franc remains positive on the general trend of dollar weakness. According to some experts published economic data give no reason to say that the U.S. economy no longer needs the stimulus that could force the Federal Reserve to lower the rate of reduction of the asset purchase program that could trigger a new wave of dollar weakness.

USD/CHF is trading around 0.8920. If the pair keeps falling it may reach 0.8900 (24 January lows). Overcoming last mark will open the way to 0.8850/00. The immediate resistance is represented by 0.9060 (highs 46 February). If the pair returns back above 0.9100 it will make growth target 0.9140/50 and 0.9180 (maximum of 20 November).

The pair is below the Cloud that cancels the northern movement. Tenkan-sen is crossing Kijun-sen downwards. The cloud is decreasing. The southern movement remains until Kijun-Sen is located above the price.

Bollinger bands still show a downward movement; its bands are broadening confirming the sell signal.
MACD histogram is in a negative zone. The histogram is descending.

Trading recommendations

The pair is again in a downtrend. The loss of the 89th figure will open the way to the 88th, the breakdown of which, in turn, may lead to a fall to 0.8568.