22, July 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

Overview

The Franc fell against the dollar after the euro. The dollar strengthened after The Federal Reserve chief Janet Yellen indicated last week that the interest rates may be risen sooner, if the economy continues to recover.

The price is finding the first support at 0.8950, the next one is at 0.8920. The price is finding the first resistance at 0.9000, the next one is at 0.9035.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement and form a “Golden cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

We advise to long with the first target - 0.9000. When the pair consolidates below the first target, we can open deals to the level of 0.9030.