Current trend

Last week, the US Dollar strengthened against the Swiss Franc. The volatility was quite high amid the publication of the Fed Interest Rate Decision. As it had been expected, the Regulator raised interest rates to 0.50%.

However, at the end of the week, many currencies managed to gain back their losses against the US Dollar due to corrections and not so positive US macroeconomic statistics. Moreover, many analysts suggest the rate hike was priced into the market.

Support and resistance

Bollinger Bands indicator on the daily chart is directed down while the price range is widening actively. MACD is still keeping a formal sell signal, but trying to start giving a buy signal. Stochastic has left the oversold zone.

The indicators recommend waiting for clearer trading signals.

Support levels: 0.9900, 0.9873, 0.9818, 0.9800, 0.9784 (14 December low).

Resistance levels: 0.9930, 0.9956, 1.0000 (8 December strong psychological level), 1.0032 (4 December high), 1.0075, 1.0100, 1.0120.

Trading tips

Short positions can be opened after the breakdown of the level of 0.9846 with the target at 0.9600 and stop-loss at 0.9880. Validity – 1-2 days.

Long positions can be opened when the price turns up at the level of 1.0030 (with appropriate indicators signals) with the target at 1.0100 and stop-loss at 1.0000. Validity – 1-2 days.

USD/CHF: moderate growth continued

USD/CHF: moderate growth continued

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback