13, August 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

Franc strengthened its position in the growing demand for safe assets because of the geopolitical tensions escalation in connection with the events in the east of Ukraine, and also after President Barack Obama authorized the point strikes on Islamist militants in Iraq, if they threaten American interests in the country.

The price is finding the first support at 0.9060, the next one is at 0.9030. The price is finding the resistance at 0.9090, the next one is at 0.9130.

There is a confirmed and weak sell signal. The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

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

Trading recommendations

We advise to open short positions with the first target - 0.9060. After consolidation below that level consider the level of 0.8985 as the next target.