20, April 2015

USD/CHF (a 4-hour chart)

USD/CHF (a 4-hour chart)

General overview

According to the Federal Reserve Bank of Philadelphia, the dollar failed to strengthen on Thursday despite the business activity index increase to 7.5 pp in April from the earlier 5.0 pp.

A separate report showed that last week the number of jobless claims in the United States reached the 6-week high at the level of 294K.

The price is finding the first support at 0.9370, the next one is at 0.9280. The price is finding the first resistance at 0.9540, the next one is at 0.9750.

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 horizontal movement and the Kijun-sen shows a downward movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We advise to short with the first target - 0.9370. When the pair consolidates above the first target, we can open deals to the level of 0.9280.