19, July 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The Swiss trade balance rose to $ 2.73 billion In June, the forecast was $ 2.41 billion increase in this indicator which is an important component of GDP, will support the franc. Due to the expected increase in U.S. interest rates in the medium term position of the world's reserve currency will continue to strengthen.

The current sell signal is confirmed and strong, as Chinkou span is above the price and the pair is below the Cloud.

The pair bounced from 0.9344 up through 0.9410 and it is consolidating in a range 0.9500 - 0.9410.

Chinkou Span is above the price that confirms the buy signal and indicates a bullish sentiment of the pair. Kijun-Sen and Tenkan-Sen are directed upwards. The Cloud is declining.

Bollinger Bands indicator formed a fixed downward channel.
MACD is growing in a negative area.

Trading Recommendations

Breakthrough to three-week lows below 0.9405 on Tuesday threatens further weakening of the dollar towards 0.9341 and 0.9275. The resistance 0.9535 remains inaccessible this week. The rate of decline from a high of 0.9753 last week, is likely to increase again, targeting the pair at 0.9313 and 0.9275.