Current trend
On Tuesday, USD continued to grow insignificantly against CHF. USD was under pressure from macroeconomic statistics from the US, but the instrument managed to find a balance against the publication of controversial data from the eurozone.
US investors are waiting for Thursday when the head of the European Commission Jean-Claude Juncker will make another attempt to persuade Trump's administration not to impose 20% import duties on European cars and spare parts to them. If this fails, the EU prepares reciprocal duties on US goods. Currently, two options are considered: 20% for a number of goods totaling USD 10B, or 10% for goods totaling USD 18B.
On Wednesday, data on German IFO Business Climate indicator is expected. The indicator in July may decrease from 101.8 to 101.5 points reaching its minimum values since November 2012. Investors are frightened by the possibility of introducing new US export duties on EU-manufactured cars. They can seriously hit, above all, the German economy.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is narrowing, reflecting a change of trend in the short term. MACD is going down keeping a weak sell signal (located below the signal line). Stochastic, reaching its minimum levels, reverses upwards, indicating the risks associated with the oversold dollar.
One should wait for confirmation of the signals for a possible reverse of the instrument upwards.
Resistance levels: 0.9952, 0.9971, 1.0000, 1.0032.
Support levels: 0.9923, 0.9888, 0.9853.
Trading tips
To open long positions, one can rely on the breakout of 0.9952 or 0.9971. Take profit – 1.0000 or 1.0032. Stop loss — 0.9940 or 0.9920.
A breakdown of 0.9923 or 0.9900 may become a signal for further sales with target at 0.9853. Stop loss — 0.9940 or 0.9950.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.9960, 0.9980
Take Profit 1.0000, 1.0032
Stop Loss 0.9940, 0.9920
Key Levels 0.9853, 0.9888, 0.9923, 0.9952, 0.9971, 1.0000, 1.0032
Alternative scenario
Recommendation SELL STOP
Entry Point 0.9915, 0.9890
Take Profit 0.9853
Stop Loss 0.9940, 0.9950
Key Levels 0.9853, 0.9888, 0.9923, 0.9952, 0.9971, 1.0000, 1.0032
On Tuesday, USD continued to grow insignificantly against CHF. USD was under pressure from macroeconomic statistics from the US, but the instrument managed to find a balance against the publication of controversial data from the eurozone.
US investors are waiting for Thursday when the head of the European Commission Jean-Claude Juncker will make another attempt to persuade Trump's administration not to impose 20% import duties on European cars and spare parts to them. If this fails, the EU prepares reciprocal duties on US goods. Currently, two options are considered: 20% for a number of goods totaling USD 10B, or 10% for goods totaling USD 18B.
On Wednesday, data on German IFO Business Climate indicator is expected. The indicator in July may decrease from 101.8 to 101.5 points reaching its minimum values since November 2012. Investors are frightened by the possibility of introducing new US export duties on EU-manufactured cars. They can seriously hit, above all, the German economy.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is narrowing, reflecting a change of trend in the short term. MACD is going down keeping a weak sell signal (located below the signal line). Stochastic, reaching its minimum levels, reverses upwards, indicating the risks associated with the oversold dollar.
One should wait for confirmation of the signals for a possible reverse of the instrument upwards.
Resistance levels: 0.9952, 0.9971, 1.0000, 1.0032.
Support levels: 0.9923, 0.9888, 0.9853.
Trading tips
To open long positions, one can rely on the breakout of 0.9952 or 0.9971. Take profit – 1.0000 or 1.0032. Stop loss — 0.9940 or 0.9920.
A breakdown of 0.9923 or 0.9900 may become a signal for further sales with target at 0.9853. Stop loss — 0.9940 or 0.9950.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.9960, 0.9980
Take Profit 1.0000, 1.0032
Stop Loss 0.9940, 0.9920
Key Levels 0.9853, 0.9888, 0.9923, 0.9952, 0.9971, 1.0000, 1.0032
Alternative scenario
Recommendation SELL STOP
Entry Point 0.9915, 0.9890
Take Profit 0.9853
Stop Loss 0.9940, 0.9950
Key Levels 0.9853, 0.9888, 0.9923, 0.9952, 0.9971, 1.0000, 1.0032