15, October 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Swiss franc continues to consolidate near the lows against the dollar. The Switzerland Central bank head Jordan said that the regulator would protect the exchange rate lower threshold through intervention if it was necessary.

We observe the dollar weaknesses against the major currencies, against the yen in particular as investors argue once again about the possible earlier interest rate increase by the US central bank.

From a technical point of view, the USD/CHF is trading above 0.9500. It is presented below support at the level of 0.9470. The resistance is at the level of 0.9600 and 0.9680 and is upwards at the level of 0.9830.

There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen show a downward movement and form a “Dead cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

We recommend the short positions with the first target at 0.9430. If the first target is overcome, the next target will be 0.9370.