17, July 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The dollar strengthened after Ms. Yellen said that interest rates would rise sooner if the situation on the labor market improves faster than expected. Nevertheless, the Fed chairman also said that if the economic recovery would be disappointing, the monetary policy would remain accommodative.

The price is finding the first support at 0.8950, the next one is at 0.8920.

The price is finding the first resistance at 0.9000, the next one is at 0.9035. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement and form a “Golden cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is going up.

Trading recommendations

We advise to long with the first target - 0.9000. When the pair consolidates above the first target, we can start deals to the level of 0.9035.