13, May 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The frank continued to fall. Earlier, the Fed Chairman Janet Yellen said she was confident in the U.S. economy continued growth. According to the head of the American regulator, the labor market conditions are far from satisfactory, but the situation was improved.

FOMC expects that it will take significant time between the completion of the assets buying and the first interest rates increase. Yellen said that if everything goes according to plan, QE will be completed in the autumn.

The first support is 0.8850, the next one is 0.8800. The first resistance is 0.8890, the next is one 0.8920.

The price is above the Cloud and above Chinkou-Span, that’s a strong and confirmed buy signal.

The upward movement remains until Kijun-Sen is under the price.

The MACD histogram is pointing up, indicating the current uptrend movement.

Trading Recommendations

We advise long positions with the first target - 0.8921. When price consolidates above the first target, we recommend to consider the level 0.8982 as the next target.