14, August 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The dollar index has fallen amid the Treasury bond yields sharp decline in connection with speculations, concerning the China measures on the yuan devaluation decline that will lead to the «deflation exports" that will force the Fed to postpone interest rates increase at least until December. According to the data, the Switzerland import and producer price index weakened by -0.1% m/m in June to -0.3% m/m in July and from -6.1% y/y to -6.4% y/y.

Investors focused their attention on the jobless claims report which is expected to reach the level of 270,000 but the data showed a growth to 274,000.

The continued price consolidation below the resistance level of 0.9850 was followed by an active decline by more than 200 points. The prices declined to the support near 0.9750. then the pair rebounded upwards and broke through this level upwards.

The price is finding the first support at 0.9750, the next one is at 0.9540. The price is finding the first resistance at 0.9850, the next one is at 0.9960.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.

The MACD indicator is in a neutral territory. The price is correcting.

Trading recommendations

The approach to the level of 0.9540 may lead to a price rebound upwards.