21, January 2015

USD/CHF (a 4-hour chart)

USD/CHF (a 4-hour chart)

General overview

The franc tries to stabilize after the Swiss National Bank unexpectedly canceled the franc peg to the euro at the level of 1.20 last Thursday and also lowered the deposit rate to -0.75%, stating that in the current environment, including the euro depreciation and the current monetary policy, it is not necessary to maintain the franc peg to the euro.

The price is finding the first support at 0.8740, the next one is at 0.8540. The price is finding the first resistance at 0.8940, the next one is at 0.9150.

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

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

Trading recommendations

The pair is consolidating now. We advise to short with the first target - 0.8540. When the pair consolidates below the first target, we can open deals to the level of 0.8340.