21, August 2015

USD/CHF (a 4-hour chart)

USD/CHF (a 4-hour chart)

General overview

The dollar fell considerably against the Swiss franc after the FOMC minutes publication somewhat reduced speculations about the September rate hike. The traders’ attention is directed to the initial jobless claims week report. The data showed an increase up to 277 thousand. According to the previous month revised data, the Switzerland trade surplus was 3,741 million francs compared with 3509 billion in July.

Bears broke through the support level of 0.9650.

The price is finding the first support at 0.9540, the next one is at 0.9460. The price is finding the first resistance at 0.9650, 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 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 decreasing.

Trading recommendations

We advise to short with the first target – 0.9540. When the pair consolidates below the first target, we can open deals to the levels of 0.9370 and 0.9280.