Current trend

The US currency was affected by EU news, where Greece had repaid its debt, as well as by profit-taking on long US dollar positions.

The USD/CHF pair is supported by the possibility of the Swiss National Bank intervention, the negative Swiss interest rate and the Fed's intention to tighten the US monetary policy. There is a 50 percent chance that the first US interest rate increase will take place in September.

On Thursday at 5:00 p.m. (GMT +3), the US Leading Indicators for June are released; on Friday, Markit Manufacturing PMI for July and New Home Sales statistics for June are published at 4:45 p.m. and 5:00 p.m.

Support and resistance

The USD/CHF is trading within a narrow channel at the opening price. Since April, the pair is moving mainly within two corridors: a wider one (between 0.9720 and 0.9120) and a narrower one (between 0.9550 and 0.9250).

On the daily chart OsMA and Stochastic indicators are leaving the buy zone and form a sell signal. On the contrary, on the 4-hour chart they are leaving the sell zone and form a buy signal. Open positions when indicators give appropriate signals. The further downward correction is possible towards 0.9550, 0.9430.

From the fundamental point of view, the pair is likely to grow with possible corrections within the upward channel.

Support levels: 0.9550, 0.9465, 0.9430.

Resistance levels: 0.9650, 0.9720.

Trading tips

Place pending buy orders from 0.9550, 0.9500 with targets at 0.9650, 0.9700 and stop-loss at 0.9480. This scenario is relevant until indicators on the daily chart are in the buy zone (above the zero line).

Short positions should be considered when indicators on the daily chart are below the zero line and the level 0.9500 is broken through. In this case, targets are 0.9430, 0.9400, 0.9350, 0.9250.

Pending sell orders may be placed from 0.9650, 0.9700, 0.9720 with targets at 0.9600, 0.9550 and stop-loss at 0.9750.

USD/CHF: fundamental factors worth considering

USD/CHF: fundamental factors worth considering

The material published on this page is produced by LiteForex 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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