25, October 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The pair can move into one direction only against the weakness of the U.S. dollar. Meanwhile, the latest data show that the situation is getting better in the Swiss economy.

The USA statistics that was delayed due to the problems in the U.S. government can play in favor of the franc in the near future - for example, any variation in the data on the U.S. labor market will hit the U.S. dollar and, therefore, will support franc.

The pair has the potential to fall to the area of 0.8870.

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

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. Its bands are widening. The MACD is in a negative area right now.

Trading Recommendations

We recommend opening short positions. The first target 0.8940 has been broken. The next target is 0.8870.