30, May 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The frank moved yesterday in a resonance to the other currencies. Yesterday the pair changed the direction once again. The CHF/USD resumed the downward movement, breaking the Ichimoku cloud through. We believe that the pair will stay under the cloud for a while.

The goal for the downward movement is the support level 0.9540. The pair just tested it yesterday. If the price consolidates at this level, the pair will go to 0.9475.

The downward movement is maintained as long as the price is below the Kijun-Sen. Chinkou Span is lower the price, which means the bearish mood of traders.

Bollinger Bands lines are broadening, confirming market volatility.
MACD is turned down signaling a downward price movement.

Trading recommendations

It is advised to consider short positions with the first target - 0.9475. But first, the pair needs to consolidate at 0.9540.