USD/CHF – Mathematical analysis with Murray lines for August 14, 2013
The better than expected data from the U.S. boosted the dollar against major currencies during New York session.
U.S. retail sales rose 0.5% in July, up from the estimate of 0.4%, while the overall figure showed a rise of 0.2% as expected. Moreover, the headline figure June was revised from 0.4% to 0.6%, while the core reading has been updated from 0.0% to 0.1%.
So, USD/CHF, after having passed the fence during the upward rally 0.9277 yesterday, this morning the USD/CHF trades at 0.9372 approaching the line 5/8 (green line) that has to be the top line of the range of rates and is located at 0.9399. To overcome the 0.9399 line during today’s session is likely to last until 0.9430 rise. Moreover, there is also the possibility of the pair being retracted from these levels to the line 4/8 (blue line) in this case becomes an important support to continue its upward trend.
Graphic 4 Hours
In 4h chart, we see that USD/CHF trading at this time very close to the yellow line 7/8 Murrey, being this mild level of resistance is likely the pair exceed it if difficulty reaching a new high at 0.9399 so we can still go shopping preferably close to the line 6/8 (red line) in this time frame would be a support to consider. On the other hand, if the price does not come to withdraw to the line 6/8 and continues its upward trend in these levels we do not recommend to enter because the risk benefit we would not be very favorable.
Graphic 1 Hour
Finally, in 1 hour charts we see a similar picture, trading at 0.9355 currently having overcome resistance located at 0.9349 (green line) for this time frame. Being the line 7/8 mild resistance line normally exceeds the price it without difficulty, and taking into account the upward trend that began yesterday, we can expect a possible follow up to 0.9399 or even 0.9430 for possible shrinkage.
The material has been provided by InstaForex Company – www.instaforex.com