26, October 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The euro fell after the ECB President Mario Draghi's statement. Draghi's rhetoric was perceived by traders as a signal of the inevitable new measures to liberalize the monetary policy in the short term. Draghi's words sharply pressured the single currency and supported the dollar as the markets believe that the Federal Reserve may raise the interest rates in December if the economy and the market would be as well as projected.

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

There is a confirmed and a strong buy signal. The price is above the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen are directed upwards. The upward movement will be until the price is above the Cloud.

The MACD is in a positive territory above its signal line. The price is growing.

Trading recommendations

The first target is 0.9850. The pair may correct to the level of 0.9750 and 0.9650.