USD/CHF – Mathematical analysis with Murray Lines for September 09, 2013
USDCHF quickly rebounded Friday after several days of depreciation during the week falling from a high of 0.9455 to 0.9355. It is amazing how the franc managed to end Friday on a positive note, since data from Switzerland were actually weaker than expected. Swiss CPI had a 0.1% decrease rather than the flat reading estimated. This was following the fall of 0.4% in the previous month, which led some market observers to worry that Switzerland could suffer deflation. Fortunately for the franc, both the U.S. and the eurozone are facing economic problems!
Hence, at this time we can again say that the Swiss franc is in a sales area, as it trades below the line 5/8 with a probable drop to 0.9277 in the coming days.
Similarly, in 4H chart we observe trading below the 2/8 (red line) considered the same reversal zone turn in that area also have their daily pivot, which makes us think that the Swiss franc gained ground may continue to find support around 0.9400, where the line eighth and then possibly get them a new high in the next few days of the current month.
For today’s session it is expected to report the unemployment rate and figures for retail sales in the current session of London. It is expected that the unemployment rate will remain stable at 3.2%, while retail sales could pick up from an annual rate of 2.3% to 3.2% in July. Better than expected figures could extend the rise of the franc while readings lower than expected could force it to return to its recent gains.
In 1-hour chart, note that the USDCHF pair is moving below its ranks by centerline of gravitation which eventually could lead to a fresh taste to the first baseline of its trading band which is around 0.9337 .
So our suggestion for today Monday September 9 is:
Sell below 0.9400
Stop loss at: 0.9415
Take Profit at: 0.9340
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