08, July 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The dollar/franc will consolidate with a tendency to increase. The pair will stay with the support of a positive attitude to the dollar and the market demand for the Swiss currency in the growing euro/franc and declining franc/yen. We expect the June data on unemployment in Switzerland and Swiss National Bank gold reserves.

The price is finding the first support at 0.8920, the next one is at 0.8890. The price is finding the first resistance at 0.8950, the next one is at 0.9000. There is a non-confirmed and weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD indicator is in the positive territory.

Trading recommendations

We advise to long with the first target - 0.8975. When the pair consolidates below the first target, we can start a deal to the level of 0.9000.