16, April 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The franc stabilized after the European leaders began to discuss an expanded sanctions against Russia because of interference in the latest events in the Ukraine. Among the economic data that in the current conditions go by the wayside, the growth in the U.S. retail sales by 1.1 % in March after rising up at 0.7% in February should be noted. This fact points to the growth revival continuing after the slowdown, caused by the adverse weather conditions at the beginning of the year. The forecast assumed a growth rate at 0.9 %.

The first support is 0.8800, the next is 0.8740. The first resistance is 0.8850, the next is 0.8890.

The price is below the cloud and under Chinkou-Span, that’s a confirmed buy signal. The Kijun-sen is moving horizontally. The Tenkan-sen is directed down. The cloud is directed downwards. The southern movement remains until Kijun-Sen is above the price.

The MACD histogram crossed the zero line downwards; it continues to gradually decline.

Trading recommendations

The short positions with the goal 0.8800 are recommended. If the price is fixed below, the price may continue to move to the level 0.8740.