After yesterday’s market intervention by the People’s Bank of China and a fall in the USD, today the USD gained its losses back.
A number of publications is due in the US today, between 3:30 pm and 8 pm (GMT +3). The most important one is the data on Retail Sales for July, which are forecasted to grow by 0.5% after a fall in June by 0.3%.
Also, pay attention to the ECB Monetary Policy Meeting Accounts today, as it may affect the whole market and the movement in the USD/CHF pair in particular.
Support and resistance
The pair broke out the upper border of the ascending channel and grows toward the year highs at 1.0100. The overcome levels of 0.9650 and 0.9720 now serve as support levels.
On the daily chart, OsMA and Stochastic fell but remain in the positive zone. On the 4-hour chart, the indicators give buy signals.
Long positions remain viable while the pair trades above the level of 0.9470 (area of the moving averages EMA50, EMA144, EMA200 on the daily chart).
Support levels: 0.9720, 0.9650, 0.9550, 0.9470.
Resistance levels: 0.9850, 0.9900.
Open long positions from the current levels and from 0.9780, 0.9720, 0.9670 with targets at 0.9850, 0.9900, 0.9990 and stop-loss at 0.9630.
Short positions can be opened after the breakdown of the level of 0.9600 (with the appropriate indicators signals) with targets at 0.9550, 0.9470.