21, October 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The nearest support level is a local minimum 0.8966. If the price breaks this level, the next support will be at 0.8930. The resistance of the pair is located at 0.9175.

Against the background of the capitulation of long positions in U.S. currency the pair dived sharply to bids near 0.9025 while the downward movement has slightly slowed. The bulls have little force for growth, we recommend to open short positions at the current levels with a stop at 0.9250 as we expect falling to 0.8940, and then to 0.8770.

The price is below the cloud and is consolidating below of it at 0.9040. We can see that Tenkan-sen and Kijun-sen are directed downwards. Chinkou Span is below the price, the cloud is neutral now.

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 the question.

Bollinger Bands indicates the change of the trend. The MACD is in a negative area right now.

Trading Recommendations

We recommend to open short positions. The first target 0.9040 has been overcome, the pair needs to consolidate at it. The next target is 0.8990.