USD/CHF – Mathematical analysis with Murray lines for August 15, 2013
The USD/CHF pair again lost ground against the U.S. dollar during the session on Wednesday 14, peaking at 0.9376 and then closing the day at 0.9354. The rate is trading currently at 0.9384 nearly 30 opening price points and with a high probability of closing on line 5/8 located in 0.93399 Murrey comes to be the top line of its trading range. However, at this point the first line of resistance of its trading band is located; it is likely to cause the price to retract from this resistance zone as it also coincides with the R-2 weekly. The producer price index (PPI) was held during the month of July and was lower than the increase estimated at 0.4% and 0.1% in the previous month.
In 4H charts we see the USD/CHF pair is receding line 8/8 (blue line) located at 0.9399. This area according to the Murray theory is considered as the last line of resistance which is hard to break. Also keep in mind that the price came to this area after having broken the upper line of its trend channel on the H4, but it also collided with the top line of the trend channel on the H1. So this could be its final push to the upside for a change of direction. However, we must wait a second attempt to cross the 0.9399 area to minimize the risk and enter the market selling. Conversely if we decide to go below 0.9369, we place our stop loss above 0.9460 where the line is located +2/8 price extreme line we see that the pair is unlikely ever to meet.
Finally at 1-hour chart there is a similar picture to 4-hour, with a receding line 8/8 which, as already mentioned, is considered to be the last line of resistance and 0.9354 support finding where the line is located 5/8 (line green) becomes the top line of its trading range. Besides the trend oscillator is in sales area. So it may be a good opportunity to enter sales orders in the medium term. But it is suggested to wait a new upward momentum to give hard sales positions and minimize risk.
The material has been provided by InstaForex Company – www.instaforex.com