05, May 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The high chf exchange rate amid zero rates creates the need to maintain the exchange rate limit which remains the most important Swiss Central Bank monetary tool. The further Swiss franc strengthening may lead to an increase in the deflation threat.

We have not had a steady trend for a long time.

The first support is 0.8740, and the next one is 0.8700. The first resistance is 0.8800, the next is one 0.8850.

The price is under the Cloud and under Chinkou-Span, that’s a weak and confirmed sell signal.

The downward movement remains until Kijun-Sen is above the price.

The MACD histogram is at zero area.

Trading Recommendations

We advise to go short with the first target - 0.8790. After fixing below this mark we believe the price will go to 0.8765.