20, August 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

Dollar rose after the latest data showed that the USA domestic builders’ sentiment unexpectedly rose in August which indicates the housing market strength. The Housing Market Index from NAHB reached the seven-month high, although no one expected it to change.

The price is finding the first support at 0.9060, the next one is at 0.9030. The price is finding the first resistance at 0.9090, the next one is at 0.9130.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen is crossing the Kijun-sen upwards. The Cloud is descending.

The MACD indicator is in a positive territory. The price is returned to the growth.

Trading recommendations

The longs are preferable now. The level 0.9090 is the first target. After overcoming the first target the pair may grow to 0.9130.