Current trend
Having started to weaken against USD at the end of July, CHF continued this dynamics at the beginning of the current week. The policy of the National Bank of Switzerland, unlike the European Central Bank, is still aimed at the weakening of the national currency, and for this purpose the Bank of Switzerland is ready to use currency interventions. As a result of pair USD/CHF strengthened this week and broke through the important resistance level of 0.9650-0.9750. This area is the gathering of three D1 channels (pink, green, and olive) that are at least 1.5 years old. The fact that the pair broke through it easily indicates its “bullish” preferences in the near future. The return of the price back to this zone confirms the scenario.
Important inflation data from Switzerland are due only next week. Today the market is waiting for releases from the USA: labor costs per unit of products and production in the non-farm area at 14:30 (GMT+2) and changes in oil and petrochemicals reserves by the US Department of Energy at 16:30 (GMT+2).
The main scenario for the next two days is the continuation of the pair's strengthening.
Support and resistance
Support levels: 0.9640, 0.9550, 0.9490.
Resistance levels: 0.9700, 0.9780, 0.9850, 0.9930.
Trading tips
Long positions may be opened at the market price with targets at 0.9700, 0.9780 and stop-loss at 0.9600.
Alternatively, sell positions may be opened from the level of 0.9640 with target at 0.9550 and stop-loss at 0.9720.
Having started to weaken against USD at the end of July, CHF continued this dynamics at the beginning of the current week. The policy of the National Bank of Switzerland, unlike the European Central Bank, is still aimed at the weakening of the national currency, and for this purpose the Bank of Switzerland is ready to use currency interventions. As a result of pair USD/CHF strengthened this week and broke through the important resistance level of 0.9650-0.9750. This area is the gathering of three D1 channels (pink, green, and olive) that are at least 1.5 years old. The fact that the pair broke through it easily indicates its “bullish” preferences in the near future. The return of the price back to this zone confirms the scenario.
Important inflation data from Switzerland are due only next week. Today the market is waiting for releases from the USA: labor costs per unit of products and production in the non-farm area at 14:30 (GMT+2) and changes in oil and petrochemicals reserves by the US Department of Energy at 16:30 (GMT+2).
The main scenario for the next two days is the continuation of the pair's strengthening.
Support and resistance
Support levels: 0.9640, 0.9550, 0.9490.
Resistance levels: 0.9700, 0.9780, 0.9850, 0.9930.
Trading tips
Long positions may be opened at the market price with targets at 0.9700, 0.9780 and stop-loss at 0.9600.
Alternatively, sell positions may be opened from the level of 0.9640 with target at 0.9550 and stop-loss at 0.9720.