11, July 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Swiss franc strengthened against the dollar on the U.S. currency general weakening, caused by the FOMC minutes publication. The document, in particular, noted that, if the current trends is preserved the economy the FOMC representatives would decide to finish the asset purchases program in October.

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 confirmed and weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen the Kijun-sen show a horizontal movement and form a “Dead cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a neutral territory.

Trading recommendations

We advise to open short positions with the target 0. 8880. This level overcoming will enable sellers to target the level of 0.8850.