18, March 2014

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The franc grew up versus the U.S. dollar since 2011, and also strengthened versus all the other major currencies.

The Swiss National Bank may resort to negative rates if the ECB lowers interest rates at its April meeting, because any pressure from the ECB influences the franc. A rate cut by the ECB in April is likely to be used to avoid further inflation reduce.

The support is 0.8690. The first resistance is 0.8800, the next -0.8850.

The pair is decreasing. Tenkan-Sen and Kijun-Sen are directed down. The southern movement is strong. The cloud is directed down. The southern movement remains until Kijun-Sen is located above the price.

Bollinger bands still show a downward movement.
MACD histogram is in a negative zone. The histogram is descending.

Trading recommendations

It’s advised to go short with the main goal 0.8679. When fixing the price below the first target, the main goal is 0.8635.