Overview:
The franc is advancing further versus the dollar. The price is increasing acceleration to the downside and yesterday the pair closed at 0.8883.
Trend analysis:
Alligator is giving the strongest sell signal – its mouth opened down and the alligator starts hunting bears. The mouth checked according to the Gator Oscillator shows that the signal is strong enough to open a sell position. The support level 0.8921 was successfully broken down yesterday and the price is continuing downside movement in the range of the major bearish trend. At the same time we have a local acceleration channel in the range of the main downside movement (see chart below).
Indicator analysis:
RSI and Stochastic oscillators entered their oversold zones at H4. In a daily graph the Stochastic Oscillator is leaving the oversold zone for the neutral zone, indicating a buy signal. In all graphs the MACD is proving our intention to buy. We might expect a slight upside correction movement caused by the Stochastic buy signals. Simultaneously, the 0.8970 level (Resistance of the local channel) will act as resistance level.
Recommendations:
Open short-term BUY positions and remember about the strong Resistance level 0.8970, which can also coincide with the Fibo 23.6 level. Recommended S/L – 0.8835.
As for SELL, wait for the Oscillator signals (in case of an upside correction). Then the first target will be the graph’s low and the second one will be the limit of the local price channel.
