03, April 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

The USD/CHF lost its growth strength yesterday due to the backdrop of “dovish” Fed chief Janet Yellen comments. She did not directly touch the monetary policy but she noted the U.S. economy persistence in significant events that may require some further monetary stimulus.

The franc strengthened the position following the Eurodollar. This week the major Swiss economic publications are expected. The focus of the market is on the statistical reports in Europe and the USA.

The first support is 0.8800, the next one is 0.8740. The first resistance is 0.8850, the next one is 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 histogram is still located in the positive area.

Trading recommendations

The Franc returned to the growth. It may grow to 0.8890 where we expect a bounce down back to 0.8850.