After a prolonged downward correction in late May and early June, USD against CHF grows again.
The pair is trading within a slight upward channel. At the end of last trading week and on Monday, the instrument fell by more than 100 points, but by the evening it restored the loss and maintained the momentum. Due to the lack of key releases in the US, USD is growing due to the change in trade moods.
On Wednesday, the traders will focus on Producer Price Index publication, on Thursday and Friday, the inflation, the employment market and key indices releases are worth traders’ attention.
Support and resistance
In the medium term, the pair can reach local highs at 1.0030, 1.0055. Raising rates of the Fed or a positive fundamental background can push the price even higher.
Technically, the pair consolidates after a significant growth at the beginning of the second quarter. On the monthly chart, it stays above the moving average and can grow the upper moving one at the level of 1.0240. The first target will be 1.0055, which is the upper border of the current upward channel.
On the weekly chart, technical indicators confirm the growth forecast, MACD keeps the high volume of long positions, and Bollinger bands are directed upwards.
Resistance levels: 0.9975, 1.0030, 1.0055, 1.0070, 1.0130, 1.0240.
Support levels: 0.9900, 0.9850, 0.9770, 0.9730, 0.9650, 0.9600.
It is relevant to increase the volumes of long positions from the current level with the target at 1.0055 and stop loss 0.9870.
US Dollar vs Swiss Franc
|Support levels||0.9600, 0.9650, 0.9730, 0.9770, 0.9850, 0.9900, 0.9975, 1.0030, 1.0055, 1.0070, 1.0130, 1.0240|
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