07, May 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The franc remains positive on the dollar weakening and rising demand for safe assets.

It should be noted that the U.S. business activity in the services sector in April was 55.0 vs. 54.5 and 55.3 in March among the published data. The index of business activity in the service sector from the ISM in April reached 55.2 vs. 54.1 and 53.1 in March.

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 strong and confirmed sell signal.

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

The MACD histogram is pointing down, indicating the current downtrend movement rates.

Trading Recommendations

We still recommend short position opening with the first target - 0.8750. After reaching this level the price might fall to 0.8720.