Current trend

Since the beginning of this week, USD has strengthened against CHF amid investors' renewed interest in risk.

Yesterday's growth of the pair is connected with the outcome of the Fed representative Neel Kashkari's speech. The official said that the banks and other financial institutions took a big step forward, having managed to learn from the crisis period of 2007-2009. At the moment, financial institutions in the US are betting exclusively on high-quality assets, making the US banking system one of the strongest and most reliable in the world.

ADP Employment Change Report is due today at 14:15 (GMT+2). At 15:45 and 16:00 (GMT+2), Markit Services PMI will be published. In addition, further enhancement of the instrument is likely to be facilitated by statements of the Fed representatives, James Bullard and Loretta Mester.

Support and resistance

On the H4 chart the instrument corrected to the middle line of Bollinger Bands. Significant resistance is the level of 0.9600, the breakout of which will form a signal to open positions for purchase. The indicator is directed upwards, and the price range is expanding, which is the basis for further strengthening of USD/CHF.

MACD histogram is in the positive zone, keeping a strong buy signal.

Stochastic is leaving the overbought area having formed the sell signal.

Support levels: 0.9457, 0.9479, 0.9508, 0.9530, 0.9549, 0.9563.

Resistance levels: 0.9588, 0.9600, 0.9633.

Trading tips

Long positions may be opened above the level of 0.9600 with targets at 0.9633, 0.9665 and stop-loss at 0.9575. Implementation period: 1-2 days.

Short positions may be opened below the level of 0.9560 with target at 0.9490 and stop-loss at 0.9590. Implementation period: 1-2 days.

US Dollar vs Swiss Franc

BuySellSpread
0.99350.9931832

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point0.9605
Take Profit0.9633, 0.9665
Stop Loss0.9575
Support levels0.9457, 0.9479, 0.9508, 0.9530, 0.9549, 0.9563, 0.9588, 0.9600, 0.9633

Alternative scenario

RecommendationsSELL STOP
Entry Point0.9555
Take Profit0.9490
Stop Loss0.9590
Support levels0.9457, 0.9479, 0.9508, 0.9530, 0.9549, 0.9563, 0.9588, 0.9600, 0.9633
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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