12, August 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The dollar/franc will be traded in the lower range, under the pressure from deteriorating relationship to the dollar and the market demand for the Swiss currency on the pair. The reduction potential is limited by the growing Swiss currency in the EUR/CHF and the Swiss National Bank soft monetary policy

The price is finding the first support at 0.9030, the next one is at 0.8990. The price is finding the resistance at 0.9060, the next one is at 0.9090.

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

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

Trading recommendations

We recommend the short positions with the first target - 0.9030. After consolidating below the first target, the next target will be the level of 0.8990.