Sasha Singh
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USDCHF : Might Continue Trimming its Gains

US dollar weakened a little against its major counterparts today after the release of New Home Sales data by US Census Bureau. However the currency still seems supported by the Fed chair Yellen comments on economy. The official data showed that the sales of new single family houses in July 2014 declined to 412K from the reading of 422K in June. Economists were expecting the reading to increase to 426K.

USDCHF : 4 Hour Chart

Let's take a look at USDCHF, on the 4 hour chart the pair currently testing the key support at .9145. If it declines below this support, it will again find support from the rising support trend line on the chart. All the moving averages are heading in upward direction thus also giving an upward continuation signal.

USDCHF : Daily Chart

However on the daily chart, the pair seems like trading within a rising wedge pattern which gives a bearish signal. Accordingly the pair should continue to decline and break below the rising support trend line.On the stochastic oscillator the %K line has just crossed above the %D line signaling that the pair will continue to follow the downtrend until the %K line again declines below the %D line. So we might see the pair extending losses for a while.