This week, the pair USD/CHF has increased by over 200 points. Franc is still under pressure from the data on consumer price index for March. The indicator has confirmed that deflation in Switzerland is deepening; on the annual basis this index has amounted to 0.9%. In the circumstances, the USD has better position as an investment asset.
Today, attention shall be focused on the primary and secondary applications for unemployment benefits in the USA; however, this data will not be able to change upward trend. On Friday, unemployment Swiss statistics for March can affect market.
Support and resistance
Technically, the pair tries to consolidate above the level of отметки 0.9690 (Fibonacci level of 23.6%). The first target of the “bulls” is 0.9750. If this level is broken down, the price can go up to 0.9830 and 0.9885. Otherwise, the pair can reverse and go down to 0.9615 and 0.9500.
Technical indicators give mixed signals. Bollinger bands are turning up. MACD histogram is in the positive zone, its volumes are increasing. Stochastic is in the overbought zone and may go down soon.
Support levels: 0.9750, 0.9830 and 0.9885.
Resistance levels: 0.9615, 0.9500 and 0.9445.
It is recommended to open short-term long positions at the current price with the target of 0.9750. At this level it is also advisable to place pending buy orders with the target of 0.9830. Short positions can be opened if the price pushes off from the level of 0.9750 and consolidates below the level of 0.9690. The target of short positions will be the level of 0.9615.