USD/CHF: perspective of growth remains

Current trend

The US dollar remains in the descending channel against the Swiss franc.

At the beginning of the week, the pair declined to a local low of the beginning of March (0.9425) which is the lower limit of the current downward channel. Today, the instrument went up on a change in trade sentiment and returned to the upper border of the channel (0.9460) within a few hours, consolidated below this mark, and is now consolidating in a narrow side channel.

Particular attention should be paid to the US data on the labor market, major indices and retail sales. On March 15 (at 10:30 GMT+2), The National Bank of Switzerland will publish a decision on the basic rate and comments on monetary policy.

Support and resistance

In the short term, the pair will continue to trade in the current downward trend. There’s the high probability of forming a new downward wave from the current level with the target of 0.9410. Despite this, in the medium term, the US dollar is expected to further strengthen, which will eventually ensure the growth of the instrument within the framework of a long-term uptrend.

Technical indicators on the hourly chart are rearranging: MACD shows a drop in the volume of short positions, BollingerBands are reversing upwards.

Support levels: 0.9450, 0.9440, 0.9425, 0.9410, 0.9380, 0.9330.

Resistance levels: 0.9460, 0.9500, 0.9510, 0.9560.

Trading tips

In this situation, buy positions may be opened at the current level; pending long orders can be put from the level of 0.9410 with targets at и 0.9510, 0.9560 and stop-loss at 0.9370.

US Dollar vs Swiss Franc

Buy Sell Spread
0.9459 0.9456 30

Scenario

Timeframe Day’s Range
Recommendations BUY
Entry Point 0.9451
Take Profit 0.9510, 0.9560
Stop Loss 0.9400
Support levels 0.9330, 0.9380, 0.9410, 0.9440, 0.9450, 0.9425, 0.9460, 0.9500, 0.9510, 0.9560

Alternative scenario

Recommendations BUY LIMIT
Entry Point 0.9410
Take Profit 0.9510, 0.9560
Stop Loss 0.9370
Support levels 0.9330, 0.9380, 0.9410, 0.9440, 0.9450, 0.9425, 0.9460, 0.9500, 0.9510, 0.9560

USD/CHF: perspective of growth remains

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