04, July 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The dollar rebounded from an eight-month low mark against the currencies basket after the solid data publication on the labor market, giving the hope for the world's largest economy continued restoration.

The ADP report on employment in the U.S. private sector in June showed the new jobs growth at 281K vs. 200K.

The factory orders fell in May by 0.5% after the rising on 0.8% in April and the decrease forecast of 0.3%.

The dollar maintained its position after Yellen Jeanette’s statements that there was no need to change the monetary policy to ensure the financial stability.

The price is finding the first support at 0.8920, the next one is at 0.8890. The price is finding the first resistance at 0.8950, the next one is at 0.9000. The price is in the Cloud and under Chinkou-Span. The upward movement remains until Kijun-Sen is under the price.

The MACD indicator is in the negative territory.

Trading recommendations

We advise to consider the short positions with the first target - 0.8920.