27, June 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The dollar weakened across the board after the U.S. Commerce Department reported that gross domestic product contracted at an annualized rate of 2.9% in the first three months of this year compared with the consensus forecast decline of 1.7%.

Initially it was reported that in the first quarter U.S. GDP increased by 0.1%, but the data were subsequently revised to a decrease of 1.0%.

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.

Trading recommendations

We advise to short with the first target - 0.8903. When the pair consolidates below the first target, we can open deals to the level of 0.8855.