02, May 2016

USD/CHF (a 4-hour chart)

USD/CHF (a 4-hour chart)

General overview

Thomas Jordan (the National Bank of Switzerland Governor) gave a speech last Friday. Switzerland published KOF Leading Indicator (102.7 vs. the forecast 102.8). The USA Personal Income for March came in at 0.4%, Reuters/Michigan Consumer Sentiment Index for April showed 89.0 vs. the forecast 90.0.

The first support lies at 0.9580 and then at 0.9500. The first resistance stands at 0.9660, the next one is at 0.9750.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement forming a “Dead Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

We recommend going short with the first target - 0.9580. When the price consolidates below the first target it may go to the level 0.9500.