23, January 2015

USD/CHF (a 4-hour chart)

USD/CHF (a 4-hour chart)

General overview

According to the ZEW the attitude towards the franc declined amid the falling Switzerland economic sentiment index for January - Credit Suisse (-4.9 to -10.8 from December). Potential pair reduction is also constrained by the positive market attitude towards the dollar, by the Switzerland negative interest rates and the intervention threat by the Swiss National Bank with the franc sales.

The price is finding the first support at 0.8540, the next one is at 0.8340. The price is finding the first resistance at 0.8740, the next one is at 0.8940.

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 increasing.

Trading recommendations

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.