28, December 2015

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

After the disappointing economic statistics the dollar fell. The US capital goods orders, the private sector investments indicator showed a decline by 0.4% last month while the US capital goods orders showed a decline by 0.5% in November, the rate is taken into account for the quarterly economic growth calculation.

The first support resides at 0.9850, the next one is 0.9750. The first resistance stands at 0.9960, the next one is at 1.0100.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

We advise to consider long positions with the first target - 0.9960. After fixing above the first target, the level 1.0100 will become the next one.