Current trend

The USD is growing on positive expectations of Non-farm Payrolls for May in the US (forecasted +232K new jobs) and unemployment reduction (forecasted 5.4%), as well as thanks to the oil price drop.

The pair USD/CHF is also supported by the general positive sentiment towards the USD, negative interest rates in Switzerland and Swiss National Bank market intervention in a form of a national currency sellout. The head of the SNB, Thomas J. Jordan stated that the intervention was caused by the current Greek crisis.

Meanwhile, at the European commission meeting the heads of the EU are trying to find a way out of the situation surrounding Greece.

Important news today include Pending Home Sales for May in the US, due at 5:00 pm (GMT +3) and Consumer Price index in Germany at 3:00 pm (GMT +3).

Support and resistance

The pair USD/CHF is trading between 0.9430 (EMA200 and EMA144 on the daily chart) and 0.9100 (2015 low).

On the 4-hour chart, OsMA and Stochastic give sell signals, while on the daily chart they signal to buy.

According to the technical analysis, short positions are preferred, while fundamental factors suggest long positions. As fundamental data is stronger at the moment, long positions are recommended.

Support levels: 0.9170, 0.9200, 0.9245, 0.9260.

Resistance levels: 0.9380, 0.9430.

Trading tips

Open long positions from 0.9170, 0.9260, 0.9310, 0.9340 when the appropriate indicators signals on the 4-hour chart are given, with targets at 0.9430, 0.9550, 0.9720, 1.0000, 1.0100 and stop-loss at 0.9130.

The breakdown of the level of 0.9100 will open the way towards 0.9020, 0.8900, 0.8720.

USD/CHF: positive sentiment towards the USD

USD/CHF: positive sentiment towards the USD

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