25, September 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The August US durable goods orders were published; the general Durable Goods Orders figure was expected with -2.0% after the July growth by 1.9%,. The data came out at the forecasted median. The Core Durable Goods Orders root index was expected with an increase by 0.1% after 0.4% in July. The data came out less then forecasted median at the level 0,0% The new home sales data - the forecast for August was 515 thousand against 507 thousand the previous month. The data came out at the level 552 thousand.

The pair stopped its weak upward movement and fell below the level of 0.9750. Then the pair slightly grew and tested this level that is a resistance now.

The price is finding the first support at 0.9650, the next one is 0.9540. The price is finding the first resistance at 0.9750, the next one is 0.9850.

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 horizontal movement and the Kijun-sen shows an upward movement and form a “Dead Cross”. 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 0.9960.