24, June 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The dollar/franc worked the upper limit of the Ichimoku cloud and bounced away, began to correct to the Kijun-sen, Bollinger Bands are slightly expanded.

The current buy signal is confirmed and weak, as Chinkou span entrenched above the price, and the price is at the upper boundary of the Ichimoku cloud.

The goal for the upward movement is the Senkou Span B, which price has not overcome the first time. If the price passes the first target it will go to the resistance level 0.9376.

The upward movement will be as long as the price is above the Kijun-Sen, if the price is fixed below the Kijun-sen, the buy signal will be weakened and the further upward movement is likely to be canceled.

Chinkou Span is above the price which confirms the current buy signal and indicates a bullish sentiment of the pair.

Bollinger Bands indicator shows the beginning of ascending movement, its stripes a little bit are diverging and directed upwards.

MACD is turned down which indicates a downward price movement.

Trading Recommendations

It is expected that the price will return at the resistance level 0.9349 and probably after passing it the price will continue to go to 0.9403-38 levels.

Otherwise, we expect that trading will be in the range 0.9349/0.9205. We believe that the downward movement is unlikely now as the falling to the level 0.9136 will bring oscillators again to an oversold area.