14, November 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Swiss franc strengthened slightly against the dollar.

The Swiss National Bank president, Jordan, said that the adoption of the so-called “Save Our Swiss Gold” initiative would be a "fatal error of judgment” and would complicate the central bank work.

In the center of this popular legislative initiative is the requirement to prohibit the Swiss National Bank from selling its gold reserves. In addition, the initiative requires that one fifth of the Swiss Central Bank foreign exchange reserves would be translated into the pure gold.

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.

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

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

Trading recommendations

We recommend going short with the first target - 0.9560. When the price consolidates below the first target it may go to the level 0.9500.