30, April 2014

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

The franc strengthened after it became clear, that the steps, taken by the international community to de-escalate the conflict in the east of Ukraine, did not give any visible results. The SNB head, Jordan once again reiterated, that the franc is too high, there is still a sudden growth danger; the EUR/CHF 1.2000 remains a key in determining monetary policy instruments; the real estate market poses a danger to the price stability in Switzerland; conditions in the Swiss economy are changing rapidly; the rate increase is not suitable for the franc strengthening deterrence.

The U.S. provide data on consumer confidence for April, with expected growth rate to 83.0 pp from 82.3 pp earlier.

The first support is 0.8800, and the next one is 0.8740. The first resistance is 0.8850, the next is one 0.8890.

The price is in the Cloud and above Chinkou-Span, that’s a weak and confirmed buy signal. The downward movement remains until Kijun-Sen is above the price.

The MACD histogram is decreasing.

Trading Recommendations

The franc is directed to 0.8790. When the price consolidates below the first target, the level 0.8765 will become the next one.