30, 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 being traded in a range 0.9344 - 0.9270. The first downtrend target is the support level 0.9270.

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

Reached on Friday five-week low 0.9263 is vulnerable, and the further weakening of the pair is aimed at 0.9239. Subdivided bearish wave, which originates from the lower high 0.9534 on July 15, should reach this week, the minimum required target level of 0.9239 and further weakness towards 0.9176 could be possible with a coordinated weakening of pair. Corrective gains will be difficult as long as 0.9340 resistance limits the room for growth, protecting the level of 0.9395.