11, May 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The pair dollar/franc will consolidate in the higher range after on Thursday it reached the three month low of 0.9060.

The US non-farm employment data can influence on its dynamics. The pair is supported by the improved market sentiment towards the US dollar, the Switzerland negative interest rates and the intervention threat by the Swiss National Bank with the Swiss franc sales and within the growing pair euro/franc.

The price is finding the first support at 0.9280, the next one is at 0.9160. 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 shows an upward movement and the Kijun-sen shows 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 long with the first target - 0.9370. When the pair consolidates above the first target, we can open deals to the level of 0.9540.