USD is trading against CHF near the resistance level of 0.9918 (Murrey [5/8]), with consolidation above which, the next target will be at 0.9948. Some experts believe that USD may begin to decline due to the trade war between the US and China.
It became known that Washington is going to limit Chinese investments in "industrially significant" American companies, thus trying to protect its technologies from piracy. Treasury Secretary Steven Mnuchin said a forthcoming statement related to reports of investment restrictions will also apply to other countries.
The PRC is one of the main holders of the US national debt, and if the situation starts to worsen, China may begin to get rid of US Treasury bonds, which is likely to cause problems with financing the budget deficit and subsequent economic difficulties for the US. But, according to experts, this is an extreme measure, and the countries are likely to agree on acceptable duties.
Today, investors focus on the data on durable goods orders as well as on goods trade balance in the US.
Support and resistance
Stochastic is at 75 points and does not provide a clear signal for opening a transaction.
Resistance levels: 0.9918, 0.9948.
Support levels: 0.9887, 0.9825.
Long positions may be opened from the resistance level of 0.9918 with take-profit at 0.9948 and stop-loss at 0.9895.
US Dollar vs Swiss Franc
|Support levels||0.9825, 0.9887, 0.9918, 0.9948|
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