04, August 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The dollar strengthened its position against the franc in anticipation of the United States labor market data publication. Then the pair went down and closed the trading week below the level of 0.9060. Investors are now focused on USA initial jobless claims. The economists expect the job growth in July 230000.

The price is finding the first support at 0.9035, the next one is at 0.9000. The price is finding the first resistance at 0.9060, the next one is at 0.9090.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

We advise to long with the first target - 0.9090. When the pair consolidates above the first target, we can open deals to the level of 0.9130.