Current trend

On Thursday, the pair managed to break the downward trend formed at the end of last week.

Yesterday, the US dollar strengthened against the background of positive data on the labor market and ignored the slowdown in the real estate market in July and the decline in the business activity index in August. Moreover, yesterday the United States raised tariffs, in particular, on motorcycles produced, railway cars, and steam turbines in China. The PRC responded with duties on American cars, buses, coal, and other goods. The new restrictions came into effect amid the ongoing negotiations in Washington, which is also an argument in favor of strengthening the USD.

Today at 16:00 (GMT+2) the Fed head Jerome Powell will speak at the symposium in Jackson Hole. He will deliver a report on monetary policy in a changing economy. The market also awaits the regulator's comments on the latest critical statements of President Trump.

Support and resistance

On H4 chart, the instrument was corrected to the moving midline of Bollinger Bands, which is the key support level. The indicator is reversing up, and the price range is reduced, indicating a change in the downward dynamics. MACD histogram is in the negative zone maintaining the sell signal. Stochastic has reached the overbought area having formed a strong sell signal.

Support levels: 0.9785, 0.9815, 0.9849, 0.9782.

Resistance levels: 0.9866, 0.9894, 0.9924, 0.9950, 0.9974, 1.0004, 1.0037.

Trading tips

Long positions may be opened from the current level with targets at 0.9915, 0.9940 and stop loss at 0.9825. Implementation time: 1 day.

Short positions may be opened below the level of 0.9830 with the target at 0.9785 and stop loss at 0.9845. Implementation time: 1 day.

US Dollar vs Swiss Franc

BuySellSpread
0.994820.9945725

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point0.9854
Take Profit0.9915, 0.9940
Stop Loss0.9825
Support levels0.9782, 0.9849, 0.9815, 0.9785, 0.9866, 0.9894, 0.9924, 0.9950, 0.9974, 1.0004, 1.0037

Alternative scenario

RecommendationsSELL STOP
Entry Point0.9820
Take Profit0.9785
Stop Loss0.9845
Support levels0.9782, 0.9849, 0.9815, 0.9785, 0.9866, 0.9894, 0.9924, 0.9950, 0.9974, 1.0004, 1.0037
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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