USD/CHF: the upward correction is expected

Current trend

USD is falling against CHF, and since the beginning of the year, the pair has lost more than 600 points.

Yesterday in the beginning of the trading session, the downward momentum was strengthened due to the weakening of US currency, which has regained almost all the loss due to the strong employment market data and key indices in the afternoon. The change of trading moods and the growth of the oversold US currency demand supported the pair additionally. However, the pair has begun to fall again and has almost reached the local minimum and strong support level.

Today US preliminary Q4 GDP data and Durable Goods Orders will be released.

Support and resistance

The maintenance of downward momentum to the key support levels of 0.9230, 0.9150 is expected. Afterwards, the formation of the long upward correction with the reverse of the trend is possible. The level of 0.9230 is the lower border of the wide downward range and can become an obstacle for the further decrease.

Technical indicators reflect that the pair is falling, MACD short positions’ volumes are growing, Bollinger Bands are pointed downwards.

Resistance levels: 0.9380, 0.9420, 0.9500, 0.9560, 0.9665, 0.9700, 0.9770, 0.9850.

Support levels: 0.9280, 0.9230, 0.9150, 0.9100, 0.90.30, 0.9000.

 

Trading tips

It is relevant to open pending long positions at the level of 0.9230 with the target at the level of 0.9560 and a short stop loss at 0.9180.

 

US Dollar vs Swiss Franc

Buy Sell Spread
0.93497 0.93469 28

Scenario

Timeframe Weekly
Recommendations BUY LIMIT
Entry Point 0.9230
Take Profit 0.9560
Stop Loss 0.9180
Support levels 0.9000, 0.9030, 0.9100, 0.9150, 0.9230, 0.9280, 0.9380, 0.9420, 0.9500, 0.9560, 0.9665, 0.9700, 0.9770, 0.9850

USD/CHF: the upward correction is expected

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