FX.co ★ USD/CHF - Mathematical Analysis with Murray Lines for October 16, 2013

Daily chart

After a bullish momentum over 80 pips during Tuesday's session USD/CHF retreated again and this morning it was trading at 0.9100 with the important support line area eighth (yellow line) located at 0.9094. The oscillator strength shows bullish signal on the other hand, the oscillator strength shows a decrease in sales that allows us to think that this area is a bottom, where the USD/CHF pair can start a new bullish trend.

H4 chart

In 4-hour charts after reaching the area of +1/8 (purple line) considered an extreme area overrun, and had performed the top line of the trend channel the USDCHF retreated, reaching back everything earned during Tuesday's session. At this time is finding support at line 6/8 (red line) in an upward trend is significant resistance and consequently in this case acts as support. On the other hand, there is also the fact that this line converges with the bottom line of its uptrend channel which allows us to think that from this area USDCHF may continue to rise. However, a break of the 0.9094 level and closing at least bearish candlestick below its uptrend bottom line we would show a slightly different picture.

H1 chart

The 1-hour chart gives us a clearer picture regarding a possible bullish continuation of USDCHF. On one hand, we have the line 0.9094 4/8 (blue line) considered a strong area of support/resistance and found the price trades above that area we can say that the upward trend continues. On the other hand, the price has already exceeded the bottom line of its trading band (green line) and observed a slight retraction this morning.

Finally we also note that in this time the price is trading above its 200-period moving average, through the same thing when placing an order. A good area to place our stop loss would be below it at 0.9070, handling risk of at least 2 to 1 to 0.9155.

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Email:antonio.inga@analytics.instaforex.com

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