19, December 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

On Tuesday, the Swiss currency rose on the eve of the meeting of FOMC. The pair got on U.S. inflation statistics, according to which the consumer price index remained unchanged in November and the core index increased by 0.2 %. Economists had forecasted a growth of primary and benchmarks by 0.1 percent.

Statistics showed a decrease of payments deficit to 94.8 billion dollars in the third quarter. In the housing sector confidence index reached a four-month high.

The pair consolidates above 0.8915. However, its course is still above recent lows at 0.8842. There is a support 0.8820 below 0.8842. The resistance is located at 0.8932 and 0.9020, then 0.9100.

The northern movement is confirmed. Chinkou-Span is below the prices, the price is in the Ichimoku cloud. Kijun-sen and Tenkan-sen have an upward direction.

Bollinger indicates a northern movement, the bands are directed upwards and expanding.
MACD is in the negative zone. The histogram below its signal line slowly growing giving a buy signal.

Trading recommendations

Yesterday, the dollar/franc resumed its growth rising to 0.8950. The price just tested the level, retreating to 0.8940.

In case of continued growth the pair will go to 0.8990. We expect a consolidation at current level.