22, July 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

According to Karen Jones, a senior analyst at Commerzbank, "USD / CHF is hit by a wave of sales and it is now showing signs of recovery towards 0.9358. During the rally prices need to break the March maximum of 0.9568 to get rid of the downward pressure and then take aim at the July high near 0.9753.

Last week the dollar/franc also corrected to the critical line, and even overcame it, but then completed the correction and it is now trying to resume a downward movement.

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. The first downtrend target is the support level 0.9344.

Chinkou Span is below the price that confirms the sell signal and indicates a bullish sentiment of the pair. Kijun-Sen and Tenkan-Sen are directed downwards. The Cloud is directed down.

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.