USD/CHF (a 4 hour chart)
The U.S. currency continued to weaken waiting the data that can show the goods orders index weakening in a long-term and the slowdown in sales in the U.S primary housing market. According to a statement released the other day SNB Swiss franc was overvalued in May by 12%. The assessment was made against a basket of currencies of 40 trading partners. In April figure was 12.5% overvalued.
The price is finding the first support at 0.8920, the next one is at 0.8890. The price is finding the first resistance at 0.8950, the next one is at 0.9000. The price is under the Cloud and under Chinkou-Span, that’s a weak and confirmed sell signal. The downward movement remains until Kijun-Sen is above the price. MACD is in the negative territory.
We suppose the pair will go to 0.8920 first. Having overcome the first target the price might go down to 0.8880.