USD/CHF (a 4 hour chart)
The growth of the Swiss economy in Q4 exceeded forecasts due to internal costs. Consequently, the country managed to overcome the consequences of export volume decrease as a result of the franc increased. Swiss GDP grew by 0.4% after a decline of 0.1% in the third quarter. This result was the highest for the year, and exceeded economists’ forecasts who had expected an increase of 0.2%.
The first support lies at 0.9850 and then at 0.9750. The first resistance stands at 0.9960, the next one is at 1.0100.
There is a non-confirmed and a weak sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement forming a “Dead Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is decreasing.
We advise to long with the first target - 0.9960. When the pair consolidates above the first target, we can open deals to the level of 1.0100.