30, October 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The pair is still within a descending channel. Now the quotes are near the bottom of the channel, from which an upward correction may be developed. Technically the pair is moving to the upper boundary of the channel. The USD/CHF has the potential to fall to the area 0.8870.

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

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 0.9040 and 0.9174.