05, June 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Swiss franc strengthened against the dollar. The published statistical supported the franc and against the background of zero inflation National Bank announces increase in its foreign exchange reserves.

According to the report submitted by the Federal Statistical Office the consumer prices level in March remained unchanged. This news was very positive amid predictions be expected to have lower price by 0.2%. The March index value was also a better indicator of February when prices fell by 0.1 %.

The price is finding the first support at 0.8950. The resistance is at 0.9000.

The price is above the Cloud and above Chinkou-Span, that’s a strong and confirmed buy signal. The Cloud is directed upwards. The upward movement remains until Kijun-Sen is under the price.

MACD is in the positive territory, the indicator is decreasing.

Trading recommendations

The pair is overbought. We believe it might correct a bit. The correctional targets are 0.8920 and 0.8880.