01, April 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

The franc recovered with the euro after the consumer price inflation data was published in Germany on the eve of the ECB meeting next week.

There are some rumors that possible differential rates between the ECB, the Bank of England and the Fed will not be in favor of the single currency.

The support is in the area 0.8850, the next one - 0.8800. The resistance is in the area of 0.8890.

The price is above the cloud and under Chinkou-Span, that’s a confirmed buy signal. Both trend lines are moving horizontally. The cloud is directed upwards. The northern movement remains until Kijun-Sen is located below the price.

MACD is in a positive area. The indicator is decreasing showing a sell signal.

Trading recommendations

The Franc has changed its direction. The pair is falling now. Tenkan-sen is going to cross Kijun-Sen down. That cross will become a good sell signal. The first downward movement target is 0.8800.