13, November 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Swiss franc rose before the referendum, scheduled on the November 30 after which the gold reserves increase in the ratio of 20% to the foreign exchange reserves from the current 8% can be required from the Swiss regulator. It may complicate the National Bank work in control over the exchange rate. In this case the regulator will be given five years to increase gold reserves to the required levels.

The price is finding the first support at 0.9620, the next one is at 0.9560. The price is finding the first resistance at 0.9680, the next one is at 0.9750.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and 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 positive territory. The price is consolidating.

Trading recommendations

We recommend going short with the first target - 0.9620. When the price consolidates below the first target it may go to the level 0.9560.