USD/CHF

USD/CHF: the instrument moves horizontally

Current trend, Yesterday, USD moved horizontally against CHF.

The possibility of a coming slowdown in the growth of the Fed’s interest rates affects USD negatively. However, on Tuesday, the US currency was supported by data from American construction market. In November, Building Permits number increased from 1.264 million to 1.328 million, which was much better than the negative forecast of 1.259 million. November Housing Starts indicator also rose from 1.217 to 1.256 million, while the experts forecasted growth only to 1.225 million

CHF is under pressure from the updated SECO Swiss economic outlook: GDP growth in 2018 and 2019 will decline due to weak domestic demand. It is expected that in 2019, GDP will grow by 1.5%, and in 2020 – by 1.7%.

Support and resistance

On the daily chart, Bollinger bands are moderately reducing. The price range narrows from above, reflecting the development of the flat trade dynamics. MACD indicator falls, keeping a weak sell signal (the histogram is below the signal line). Stochastic is falling more actively is rapidly approaching its lows, reflecting that the instrument can become oversold soon.

It is better to wait until the situation is clear.

Resistance levels: 0.9936, 0.9951, 0.9980, 1.0000.

Support levels: 0.9898, 0.9861, 0.9836.

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Trading tips

Long positions can be opened after the breakout of the levels of 0.9936–0.9951 with the target at 1.0000. Stop loss is 0.9920–0.9900.

Short positions can be opened after the breakdown of the level of 0.9898 with the targets at 0.9836–0.9820. Stop loss is 0.9930.

Implementation period: 2–3 days.

 

Scenario

Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.9940, 0.9960
Take Profit 1.0000
Stop Loss 0.9920, 0.9900
Key Levels 0.9836, 0.9861, 0.9898, 0.9936, 0.9951, 0.9980, 1.0000

 

Alternative scenario

 

Recommendation SELL STOP
Entry Point 0.9890
Take Profit 0.9836, 0.9820
Stop Loss 0.9930
Key Levels 0.9836, 0.9861, 0.9898, 0.9936, 0.9951, 0.9980, 1.0000

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