29, October 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The pair continues being traded within a descending channel, which emerged in July. Now the quotes are near the bottom of the channel, from which an upward correction may be developed. "Bearish" confidence in the market was due to the uncertainty in the U.S. economy and the increasing demand for the Swiss franc.

Technically the pair can be adjusted to the upper boundary of the channel. 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 a long position with stop-loss at around 0.8889. The target levels are 0.9049 and 0.9174.