17, December 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The frank continued to consolidate in narrow range vs the dollar. Swiss National Bank (SNB) left interest rates unchanged. From a technical standpoint, USD/CHF showed low points at 0.8840 before consolidation around 0.8900. There is a support below 0.8840. Another support is at 0.8820. The resistance is at 0.8930 (Monday's high) and 0.9020, then at 0.9100.

Tenkan-sen is crossed with Kijun-sen forming a "Dead Cross". Chinkou Span is below the price. Tenkan-sen and Kijun-sen are following the price downwards. The Cloud is descending.

The pair will return to the upward movement if it gets back above the cloud. If the price returns above the Kijun-sen, the sell signal will be weakened and the further falling will be put under the question.

Indicator Bollinger shows the downward movement, its bands are narrowing forming a side channel.

MACD is in a negative zone but the histogram is making attempts now to cross the bottom up its signal line and thereby form a buy signal.

Trading Recommendations

The pair has broken up its consolidation range and continues to develop the growth structure. We believe it is going to form a structure of a growth correction. Today we expect it to work out 0.8920. Next – we expect falling to the level 0.8880. Then it may grow to the level 0.8927.