04, November 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The frank continued to fall against the dollar after the euro. The dollar index reached a three-week high against a basket of major currencies after the preliminary data showed an unexpected increase in the US GDP in the third quarter, which confirmed the validity of the Federal Reserve's decision QE program is minimized and reflects the positive trends continuation in the world's largest economy.

The price is finding the first support at 0.9620, the next one is at 0.9560. The price is finding the first resistance at 0.9680, the next one is at 0.9750.

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 and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We advise to long with the first target - 0.9680. When the pair consolidates above the first target, we can open deals to the level of 0.9750.