06, June 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Swiss franc rose slightly against the U.S. dollar having broken the strong resistance 0.9000. The U.S. dollar retained or strengthened against most major currencies after the ECB report.

Most of the regional Fed noted continued growth "rate from modest to moderate", which supports the idea that the Fed in the near future will not change the monetary policy.

In particular we noted an increase in consumer spending, improvement in the manufacturing sector, as well as continued problems in the housing sector. Despite the price pressures restraint, several counties reported an increase in price for certain goods groups, particularly food.

The labor market situation was improved.

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

We recommend long positions with the first target - 0.9015. After consolidation above the first target, we can buy to the level 0.9040.