04, December 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

Demand for the dollar was supported by the Federal Reserve rate hike expectations later this month. The Fed chief Janet Yellen said this week that she was looking forward to the interest rates increase and having highlighted the Fed and other major central banks monetary policy divergent forecasts. However the dollar sharply fell against the franc.

The price is finding the first support at 0.9960, the next one is 0.9850. The price is finding the first resistance at 1.0100, the next one is at 1.0190.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is above the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

We recommend going short with the first target - 0.9850. When the price consolidates below the first target it may go to the level 0.9750.