Current trend

Yesterday US dollar strengthened against Swiss franc in view of the tax reform bill passed by both Houses of the US Congress. The only thing left now is the signature of President Trump. USD was also supported by strong sales data in the secondary housing market. The indicator increased by 5.6% while the economists expected growth by no more than 0.9%.

The growth of Swiss trading balance proficiency slowed down in November. It was announced after today’s release of the trading balance data. Still, it had almost no impact on the rate of franc.

The main event of today will be the release of annual data on US GDP for Q3 (15:30 GMT+2). In view of recent growth of retail sales it is likely the data will be reconsidered and increased giving the dollar considerable support. The market is expected to be highly volatile.

Support and resistance

In the H4 chart the instrument has been corrected to the middle line of Bollinger Bands. MACD histogram is in the negative zone preserving a weak signal for the opening of short positions.

Support levels: 0.9830, 0.9780, 0.9750.

Resistance levels: 0.9860, 0.9885, 0.9900, 0.9925, 0.9940, 0.9970.

Trading tips

Buy positions may be opened from the level of 0.9870 with target at 0.9940 and stop-loss at 0.9830.

Short positions may be opened from the level of 0.9820 with target at 0.9780 and stop-loss at 0.9850.

The period of implementation is 1-3 days.

US Dollar vs Swiss Franc

BuySellSpread
0.99350.9931832

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point0.9870
Take Profit0.9940
Stop Loss0.9830
Support levels0.9750, 0.9780, 0.9830, 0.9860, 0.9885, 0.9900, 0.9925, 0.9940, 0.9970

Alternative scenario

RecommendationsSELL STOP
Entry Point0.9820
Take Profit0.9780
Stop Loss0.9850
Support levels0.9750, 0.9780, 0.9830, 0.9860, 0.9885, 0.9900, 0.9925, 0.9940, 0.9970
USD/CHF: general review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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