Technical analysis of USD/CHF dated 08.08.2013
USD/CHF since 10.07.2013 till now was in a downtrend that sellers were successful in achieving the lowest price of 0.91892. Currently in long term time frames such as monthly, weekly and daily price is under 5-day moving average (a consistent downtrend) and there is not any clear reason about ascending of price in these time frames.As it is obvious in the picture below, price during the descending has touched the ascending trend line (made of 3 bottom prices) and also the round supportive level of 0.92000 and has created the hammer candlestick pattern.
Closing of the bullish candle after this pattern will confirm it and warns about ascending of price.Stoch indicator in 4H time frame is in saturation sell area and with the next cycle confirms the current bottom price and warns about ascending of price that with not being in the same direction with daily time frame is not so much valid. According to the current condition the first warning for descending of price is breaking of the resistance level of 0.92303.