04, June 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The dollar keeps moderately positive attitude after the May ISM report corrected publication taking into account seasonal factors, which were not included in the original report released an hour earlier.

Thus the ISM index was revised from 53.2 to 56.0 and then to 55.4. We also expected the May business activity report from the Federal Reserve Bank of New York, after which the data will be available to investors on the production orders.

The price is finding the first support at 0.8950. The resistance is at 0.9000.

The price is above the Cloud and above Chinkou-Span, that’s a strong and confirmed buy signal. The Cloud is directed upwards. The upward movement remains until Kijun-Sen is under the price.

MACD is in the positive territory, the indicator is decreasing.

Trading recommendations

Please be advised to long with the first target - 0.9015. When the price consolidates above the first target, be advised to buy to 0.9040.