10, April 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The first Switzerland March statistics supported the franc. On the background of zero inflation, Switzerland Bank said that the currency reserves grew.

The immediate additional stimulus adoption of the ECB estimation decreased.

The first support is 0.8800, the next one is 0.8780. The first resistance is 0.8850.

The price is below the cloud and under Chinkou-Span, that’s a confirmed buy signal. The Kijun-sen is moving horizontally. The Tenkan-sen is directed down. The cloud is directed upwards. The southern movement remains until Kijun-Sen is above the price.

The MACD histogram crossed the zero line downwards; it continues to gradually decline, and thus sends a signal to sell.

Trading recommendations

The pair left an upward channel. We believe that the downward movement will be continued. If the price consolidates below the resistance 0.8800, it may continue the downward trend in a short term. The potential target is 0.8760.