23, 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". We expect the continuation of falling to the lower boundary of the channel. The immediate goal is the level 0.8940 which was tested yesterday. If the price breaks this level, the next support will become 0.8930.

We can see that Tenkan-sen and Kijun-sen are directed downwards. Chinkou Span is below the price, the cloud is going down now.

The pair will return to the upward movement if it gets back above the cloud. If the price returns above the Kijun-sen, the sell signal will be weakened and the further falling 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 opening short positions. The first target 0.8940 has been tested; the pair needs consolidating at it. The next target is 0.8870.