15, December 2014

USD/CHF (a 4-hour chart)

USD/CHF (a 4-hour chart)

General overview

The dollar exchange rate increased due to the US high retail sales. Nevertheless the dollar decreased at the end of the last week.

The good November indicators allow us to expect the Fed forecast revision towards the earlier policy tightening at the meeting next week. We expect that it will give significant support to the dollar at the end of the year

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 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 shows a downward movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We advise to short with the first target - 0.9560. When the pair consolidates under the first target, we can open deals to the level of 0.9500.