29, January 2016

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The Fed left the interest rate in the previous target range of 0.25-0.50% per annum. The rate was changed last month and the market has not seen any noticeable effect yet. The Fed accompanying statement was quite soft, although the regulator promised to raise the rates further.

The price is finding the first support at 1.0100, the next one is at 0.9960. The price is finding the first resistance at 1.0190, the next one is at 1.0280.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming 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 consolidaing.

Trading recommendations

We advise to short with the first target – 1.0100. When the pair consolidates below the first target, we can open deals to the level of 0.9960.