25, July 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

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 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

The four-week low 0.9322 reached on Monday remains vulnerable as the Bears have created a space for a further weakening of the pair. The decrease observed this week continued to a short-term drop from the peak of 0.9753 on July 9. The 0.9300 mark is the minimum required target level of falling. The auxiliary support at 0.9270 would prevent a deeper fall to 0.9176. A recovery above the projected resistance 0.9442, Tuesday's high 0.9408 secured the bearish outlook.