19, January 2015

USD/CHF (a 4-hour chart)

USD/CHF (a 4-hour chart)

General overview

The franc tries to stabilize after the euro fell against the dollar and the franc but the Swiss franc reached record highs. We should mention that the Switzerland central bank declared that it separated franc from the euro at the level of 1.2000 and reduces the deposit rate to -0.75%.

The Swiss National Bank said that in the current conditions when the euro keeps falling the peg to the euro for the franc is not “justified."

The price is finding the first support at 0.8540, the next one is at 0.8340. The price is finding the first resistance at 0.8740, the next one is at 0.8940.

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 downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We advise to short with the first target – 0.8540.