01, May 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The Swiss franc fell after an increased demand for the U.S. currency in the spotlight of the Federal Reserve meeting or rather its results. It is expected that the Fed will cut fourth consecutive program QE.
Rabobank strategists believe that third stage (QE3) will be completed in Q4 2014. Reality they retain their previous forecast of the first interest rate increase by the Fed in the 4th quarter of 2015.

The U.S. provide data on consumer confidence for April, with expected growth rate to 83.0 pp from 82.3 pp earlier.

The first support is 0.8800, and the next one is 0.8740. The first resistance is 0.8850, the next is one 0.8890.

The price is under the Cloud and under Chinkou-Span, that’s a weak sell signal.

The downward movement remains until Kijun-Sen is above the price.

The MACD histogram is at zero area.

Trading Recommendations

We advise to go long positions to the first target - 0.8850. After consolidating above the first target we advise to buy to 0.8885.