19, June 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The pair is still being traded in a price range, and it is clear that this growth will be continued.

The sell signal is strong and confirmed. Chinkou Span is located below the price, the price itself is below the Ichimoku cloud. So now the goal for the downward movement is the level 0.9215, which is reached by the price, but has not been worked out. If the pair manages to consolidate below this level it will open the road to a new target for the downward movement - 0.9160. The downward movement will be in force until the price is below the Kijun-Sen.

The indicator Bollinger bands shows the uncertainty. Its bands are narrowing and directed aside.
MACD is in the negative zone, the histogram is growing.

Trading recommendations

We see two scenarios.
The main one - the break above 0.918 will open the path to the levels 0.9280 и 0.9300.

The second scenario: We sell USD/CHF should the pair break 0.918 down. That break will direct the pair to the levels 0.9160 and 0.9110.