08, May 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Swiss franc rose against the dollar after the Minneapolis Federal Reserve Bank governor Kocherlakota said that the dollar had grown substantially the last year. In Kacherlakota’s opinion interest rates increase in 2015 is inappropriate.

Meanwhile, today during his speech the Federal Reserve Chairman Jeanette Yellen said that low interest rates were necessary to achieve the objectives which would have a positive impact on the financial stability.

The price is finding the first support at 0.9160, the next one is at 0.9060. The price is finding the first resistance at 0.9370, the next one is at 0.9540.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

We advise to short with the first target - 0.9160. When the pair consolidates above the first target, we can open deals to the level of 0.9060.