Since the beginning of this week the USD/CHF pair is falling.
The pair is declining amid weakening across the market US Dollar, as traders prefer to take some profit prior to Thanksgiving Day.
Nonetheless, the US economy demonstrates strong signs of recovery that raise chances of an interest rate hike in December. On Tuesday, preliminary data showed that the US GDP grew by 2.1% in the third quarter of the year, which is a 0.1% higher than economists forecasted.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is narrowing from the top. MACD is falling and giving a moderate sell signal. Stochastic left the overbought zone and falling.
The indicators recommend short positions.
Support levels: 1.0142 (yesterday low), 1.0120 (19 November low), 1.0100, 1.0075, 1.0050, 1.0000 (psychologically important level), 0.9956.
Resistance levels: 1.0180 (local high), 1.0224 (23 November high), 1.0240 (14 January high), 1.0300.
Long positions can be opened after the breakout of the level of 1.0220 (with the appropriate indicators signals) with targets at 1.0270, 1.0300 and stop-loss at 1.0190. Validity – 2-3 days.
Short positions can be opened below the level of 1.0100 with the target at 1.0000 and stop-loss at 1.0130. Validity – 2-3 days.