28, February 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

Swiss franc retreated after the publication of unexpectedly strong the U.S. housing market. As a result, intensified speculation about what the FED will continue the process of folding the quantitative easing policy unabated.

The pair USD/CHF recovers from area of Tuesday’s lows at the 0.8850 and is now trading near the 0.8890. The consolidation above 0.8900 will make it possible to test 0.9000. The immediate resistance is at 0.9060. Losses may increase to 0.8820.

The pair is in 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

It seems that the pair dollar/franc is trying to form a local bottom to build the upward movement. Nevertheless, the interest in buying persists and the pair returns to the current resistance. Its breaking will strengthen upward growing and give the bulls an opportunity to test 0.9000. A drop below 0.8850 reduces the prospects for the pair.