FX.co ★ USD/CHF - Mathematical analysis with Murray lines for August 19, 2013

Daily graphic

The USD/CHF after experiencing a fall on Thursday, Friday was not a good day for the pair as it was a quite volatile day. After climbing up to a maximum of 0.9287, it fell to a low of 0.9217 to close at 0.9264 eventually just 4 pips off the opening price thus forming indecision candle called doji in daily charts. What influenced this volatility was mainly due to the behavior of the dollar.

While at this time, it is below the neutral line of 4/8 (blue line) of its trading range it would be very risky to go selling at this point as there is more chance for uptrend above 0.9277.

Graphic 4 Hours

In the 4 hours chart, also shows signs of indecision, although in this time frame we can see that the pair is trading at about 40 pips from the bottom line of its trend channel taking about 40 pips go up to the top line of its trading range found in 5/8 (green line) located at 0.9308, which in turn converge into a point with the center line of its channel trend.

So our preference would go shopping with a risk of about 20 pips in this time frame.

Graphic 1 Hour

Finally, at 1 hour charts note that the USD/CHF currently trades at 0.9268 and it is in between the lines 0/8 and -1 / 8 considered this area as an area of extreme overshoot according to the theory of Murrey and high probability of a reversal in this case would be to the upside that could extend to 0.9338 in the first leg, and then extend to 0.9369 in a second pulse. This is because the yellow line eighth level is easy to beat and only 2/8 would be an important resistance.

Therefore, our preference for Monday August 19 would get sold with safety, above 0.9277 and with a fairly tight stop loss at 0.9240 below the -1 / 8 for possible risk management Minimum 3-1 0.9338