USD/CHF

USD/CHF: the dollar is falling

Current trend, On December 24, USD fell steadily against CHF, approaching the local lows renewed at the end of the last trading week.

Market activity remains low, as many traders are on the Christmas holidays. As for the news, the meeting of US Treasury Secretary Steven Mnuchin with the leadership of the largest American banks (JP Morgan, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, Morgan Stanley), held last weekend, is worth mentioning. The reason for it was the decline in the stock market. The minister said that «the banks all confirmed ample liquidity is available for lending to consumer and business markets».

In addition, USD is under pressure from the possibility of partial closure of government structures until early January, as well as rumors that President Trump may dismiss the Fed Chairman Jerome Powell.

Support and resistance

On the daily chart, Bollinger bands are steadily declining. The price range is expanding but not as fast as the "bearish" dynamics is developing. MACD indicator is falling, keeping a moderate sell signal (the histogram is below the signal line). Stochastic fluctuates below the center of its working area.

It is better to keep current short positions in the short and/or super short term until the situation is clear.

Resistance levels: 0.9880, 0.9900, 0.9936, 0.9956.

Support levels: 0.9839, 0.9800, 0.9760.

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Trading tips

Long positions can be opened after a rebound from the level of 0.9839 and a breakout of the level of 0.9880 with the targets at 0.9936–0.9956. Stop loss is 0.9850. Implementation period: 2–3 days.

Short positions can be opened after the breakdown of the level of 0.9839 with the target at 0.9800 or 0.9780. Stop loss is 0.9870. Implementation period: 1–2 days.

 

Scenario

Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.9885
Take Profit 0.9936, 0.9956
Stop Loss 0.9850
Key Levels 0.9760, 0.9800, 0.9839, 0.9880, 0.9900, 0.9936, 0.9956

 

Alternative scenario

 

Recommendation SELL STOP
Entry Point 0.9835
Take Profit 0.9800, 0.9780
Stop Loss 0.9870
Key Levels 0.9760, 0.9800, 0.9839, 0.9880, 0.9900, 0.9936, 0.9956

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