25, February 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

Frank grew up after the euro versus the U.S. dollar. However, in the middle of the week it fell slightly after the Big Twenty supported the monetary policy normalization in developing countries.

From a technical point of view, the pair is pulled back after testing 0.9000. The resistance 0.9060 is above this level. The return above 0.9100 will make growth target 0.9140/50 and 0.9180 (maximum of 20 November). The immediate support is 0.8870. The losses may increase to 0.8830.

The pair is below the Cloud that cancels the northern movement. Tenkan-sen is crossing Kijun-sen downwards. The cloud is decreasing. The southern movement remains until Kijun-Sen is located above the price.

Bollinger bands still show a downward movement.
MACD histogram is in a negative zone. The histogram is descending.

Trading recommendations

Pressure continues to grow at a minimum 0.8856 reached last week, while the overall tone of the pair remains negative. The recovery from the minimum of Wednesday (0.8856) was limited by the level 0.8915, and while projected resistance at 0.8956 limits the pair’s reversal, a break below 0.8856 is expected that it will target to the base December, 27 0.8800. Growing above 0.8889 and 0.8901 would provide respite, but its potential is limited strengthening.