28, August 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Eurozone economy recovery has been stopped forces the SNB to maintain measures to curb the national currency growth against the euro. Today, the debt crisis problem has been receded, but the economic recovery stop by the end of the second quarter and the ECB promise to keep rates low for a long time do not allow the SNB to abandon the restrictions on the foreign exchange market.

The dollar was stable against other major currencies after the United States consumer confidence upbeat data release and the controversial durable goods orders report.

The price is finding the first support at 0.9130, the next one is at 0.9090. The price is finding the first resistance at 0.9170, the next one is at 0.9210.

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

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

We advise to long with the first target - 0.9170. When the pair consolidates above the first target, we can start a deal to the level of 0.9210.