06, May 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The franc could not be fixed at the minimums, despite the solid data on the U.S. labor market state. In the U.S., the number of new jobs without a/c amounted to 288K in April versus 203K month earlier, while the unemployment rate fell down to 6.3 % in April against 6.7 %.

Nevertheless, it became known, that the ISM New York fell down to 50.6 in April vs. 52 previously, and factory orders amounted to 1.1 % in March vs. 1.4 %. Previously, the pressure on the U.S. currency happened because the Fed had made it clear that they would keep the economic stimulus measures.

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 pointing down.

Trading Recommendations

The franc moves down to the first target - 0.8750. When the price consolidates below the first target, the level 0.8720 will become the next one.