23, December 2014

USD/CHF (a 4-hour chart)

 USD/CHF (a 4-hour chart)

General overview

The franc reached the 2,5 year low against the dollar as a result of the National Bank of Switzerland unexpected decision to set a negative deposit rate to protect the franc.

The Swiss government has revised the economic forecasts towards the GDP forecast decrease for 2015 and lowered to 2.1% from the previous 2.4%.

The price is finding the first support at 0.9800, the next one is at 0.9750. The price is finding the first resistance at 0.9850, the next one is at 0.9900.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We advise to long with the first target - 0.9850. When the pair consolidates above the first target, we can open deals to the level of 0.9900.