Yesterday, when ECB President Mario Draghi gave comments on future monetary policy in the eurozone, the volatility increased, in the USD/CHF pair as well. Following a growth in stock indices, the US Dollar strengthened against safe-haven assets: the Yen, gold and the Franc. The pair closed the trading day with a rise.
Today, there is uncertainty in the market, and the pair is declining during the European session. Attention needs to be paid to Markit Manufacturing PMI for January and CB Leading Indicator for December, due in the US. If the indicators come in above the forecast, the USD/CHF pair will strengthen.
Support and resistance
The USD/CHF pair continues trading within ascending channels on the hourly, 4-hour and weekly charts. The indicators are not giving clear trading signals. On the daily chart, OsMA and Stochastic indicate flat. On the 4-hour chart, they suggest a possibility of a short-term downward correction to 1.0040 (EMA200, lower border of the ascending channel on the hourly chart and EMA50 on the 4-hour chart) and 1.0000 (EMA200 on the 4-hour chart).
From the fundamental point of view, long positions are more preferable. The consolidation above the level of 1.0120 allows the price to grow towards 2015 highs and the upper border of the channel on the weekly chart, towards the area of 1.0340.
Support levels: 1.0080, 1.0040, 1.0000, 0.9975, 0.9830, 0.9765.
Resistance levels: 1.0120, 1.0180, 1.0200.
Long positions can be opened from the level of 1.0100 with targets at 1.0135, 1.0180 and stop-loss at 1.0070.
Short positions can be opened below the level of 1.0050 with targets at 1.0000, 0.9970 and stop-loss at 1.0080.