18, August 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The dollar weakened after the United States Labor Department reported that the number of initial jobless claims increased by 21,000 to 311,000 from a revised 290,000 the previous week.

The price is finding the first support at 0.9000, the next one is at 0.8970. The price is finding the first resistance at 0.9030, the next one is at 0.9060.

There is a confirmed and strong sell signal. The price is below the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen directed downwards. The Cloud is descending.

The MACD indicator is in a negative territory. The price is correcting downwards.

Trading recommendations

We recommend short positions with the first target - 0.9000. After reaching the first target we believe the price to go deeper to 0.8970.