24, December 2013

USD/CHF (a 4- hour chart)

USD/CHF (a 4- hour chart)

General Overview

The Swiss Government is optimistic about the outlook for the economics, but risks still remain. The economic growth forecast for 2013 is comes to +1.9 % vs +1.8% previously; the forecast for 2014 is +2.3% as before.

From a technical point of view USD/CHF tested 0.9000, but could not overcome it and retreated. Above it resistance is situated at 0.9020, then 0.9100. Immediate support is at 0.8920 (maximums on December 13), there is 0.8830 below (minimums on December 17).

The price direction is northern. Chinkou Span is above the price. The price is above the cloud.

Northern movement is remained until Kijun-Sen is located below the price. Tenkan-sen is growing, Kijun sen is horizontal. The cloud is growing.

Bollinger bands show the beginning of the upward movement
MACD histogram crossed the zero line upwards and it is located in the positive zone and below its signal line.

Trading recommendations

It is recommended to go long with the first goal – 0.9029. If the price consolidates higher the first target the second level to reach is 0.9099. The stop -loss is below 0.8915.