FX.co ★ USD/CHF - Mathematical analysis with Murray lines for November 04, 2013

Monthly chart

Looking at the monthly chart of USD/CHF, we can see that the month of October ended with a candle of indecision, after which after climbing the first day of the month ended up being located at its weekly pivot at 0.9060. Currently, it is very close to its first weekly resistance located at 0.9199 and the long-term outlook is shaping up to a maximum risk of about 80-100 pips. Today, there is no signifficant data from Switzerland to be released. The same in the U.S. Therefore, it is likely to see little movement.

Weekly chart

However, in the weekly chart we see that after having left a bullish engulfing candle during the last week happened, the price right now is trying to pass line of 3/8 (green line). However, since that line becomes the starting point of its trading range from which it would be a confirmation to a possible bullish move. Therefore, it is likely to expect a retraction to 0.9060, taking into account that the price level of 0.9155 was an important support in the past. For this reason, it would be very risky to enter this time buying positions.

Daily chart

In the daily chart, the same way we see that 0.9155 where the line of 3/8 (green line) is for the USD/CHF pair the major resistance that we must consider. On the other hand, there is also the fact that at these levels there are two top lines of the trend channel. Moreover, we have as the nearest resistance line 2/8 (red line) which is located at 0.9033 so far. It will probably retract in the following days.

Our suggestion: Based on our analysis of the three charts, our suggestion for today is that we can enter into short positions below 0.9155 with a stop loss at 0.9165 and take profit at 0.9040 for a risk management 2-1

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Email:antonio.inga@analytics.instaforex.com

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