22, October 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The pair fell nearly at 100 points, moving in a downward channel. Despite the fact that the situation has stabilized in the U.S., the U.S. dollar weakened against all the "currencies basket". The Swiss franc plays a role of a calm haven and attracts more investors during the global economic instability. We expect the continuation of falling to the lower boundary of the channel. The immediate goal is the level 0.8930.

The nearest support level is a local minimum 0.8966. If the price breaks this level, the next support will become 0.8930.

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.