USD/CHF: the demand for US currency is growing

Current trend

USD has been declining significantly against the Swiss franc since November and has lost more than 800 points during this time.

In January, the momentum strengthened amid a rapid fall in investment attractiveness of the dollar. The main catalyst for the decline in demand was negative data on the main sectors of the US economy. In February, the pair reached the lower border of a wide long-term downward channel and moved to the side consolidation. The instrument was supported by a change in trade sentiment and an increase in investor interest in the oversold US currency. Last week, strong labor market data and major indices in the US were published, which led to an increase in demand and a strengthening of the pair to 0.9420 mark.

Today, the instrument slipped slightly to the level of 0.9330. The main data for the United States, namely the releases on the growth rate for Q4 2017 and the consumer sentiment index, is due in the middle of the week.

Support and resistance

In the medium term, the pair will continue to trade in a wide side channel, after which a long corrective growth is expected to the levels of 0.9700, 0.9850, which are the upper border of the long-term downward channel. The instrument will be supported by a strong data from the US and increased demand for USD. Technical indicators confirm the outlook: MACD indicates a sharp decline in the volume of short positions, and Bollinger Bands have rebuilt and fixed horizontally.

Support levels: 0.9285, 0.9230, 0.9185, 0.9150, 0.9110, 0.9030, 0.9000.

Resistance levels: 0.9380, 0.9420, 0.9500, 0.9560, 0.9700, 0.9665, 0.9700, 0.9850.

Trading tips

In this situation, long positions may be opened with targets at 0.9700, 0.9850 and stop-loss at 0.9140.

US Dollar vs Swiss Franc

Buy Sell Spread
0.93504 0.93473 31

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 0.9346
Take Profit 0.9700, 0.9850
Stop Loss 0.9140
Support levels 0.9000, 0.9030, 0.9150, 0.9185, 0.9230, 0.9285, 0.9380, 0.9420, 0.9500, 0.9560, 0.9700, 0.9665, 0.9700, 0.9850

USD/CHF: the demand for US currency is growing

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