Current trend
Yesterday Swiss franc significantly grew against US dollar, renewing the maximum of October, 26. The pair decreased due to quite favorable macroeconomic background in Eurozone and the renewed fall of US bonds yield. Investors are waiting for the US inflation data publication, which are supposed to be negative.
In addition to strong German data, traders were focused on Swiss statistics on Tuesday. The Producer and Import Prices grew by 0.5% MoM in October, which was the same as in the previous month. Analysts expected the fall of growth rate to +0.2% MoM. The YoY growth of the indicator increased from +0.8% YoY to +1.2% YoY.
Support and resistance
On the daily chart Bollinger Bands are actively reversing into downward flat. The price range is widening. Current readings don’t contradict with the downward dynamics development, but reflect the possibility of the insignificant correction or the weakening of the “bearish” pressure.
MACD is going down, keeping strong dell signal (the histogram is below the signal line). It’s better to open short positions in the short or very short term.
Stochastic is falling, too, but is reaching its lows, which reflects that the instrument will be oversold in the sort or very short term. It’s better to keep opened short positions, but not to open new ones.
Resistance levels: 0.9900, 0.9936, 0.9965, 1.0000.
Support levels: 0.9878, 0.9834, 0.9800, 0.9768.
Trading tips
Long positions can be opened after the reversal around current levels and breakout of the level of 0.9900 with the targets at 0.9965–1.0000. Stop loss is 0.9850. Implementation period: 2-3 days.
The steady breakout of the level of 0.9878 will be the signal to open short positions with the target at 0.9800. Stop loss is 0.9920. Implementation period: 2-3 days.
Yesterday Swiss franc significantly grew against US dollar, renewing the maximum of October, 26. The pair decreased due to quite favorable macroeconomic background in Eurozone and the renewed fall of US bonds yield. Investors are waiting for the US inflation data publication, which are supposed to be negative.
In addition to strong German data, traders were focused on Swiss statistics on Tuesday. The Producer and Import Prices grew by 0.5% MoM in October, which was the same as in the previous month. Analysts expected the fall of growth rate to +0.2% MoM. The YoY growth of the indicator increased from +0.8% YoY to +1.2% YoY.
Support and resistance
On the daily chart Bollinger Bands are actively reversing into downward flat. The price range is widening. Current readings don’t contradict with the downward dynamics development, but reflect the possibility of the insignificant correction or the weakening of the “bearish” pressure.
MACD is going down, keeping strong dell signal (the histogram is below the signal line). It’s better to open short positions in the short or very short term.
Stochastic is falling, too, but is reaching its lows, which reflects that the instrument will be oversold in the sort or very short term. It’s better to keep opened short positions, but not to open new ones.
Resistance levels: 0.9900, 0.9936, 0.9965, 1.0000.
Support levels: 0.9878, 0.9834, 0.9800, 0.9768.
Trading tips
Long positions can be opened after the reversal around current levels and breakout of the level of 0.9900 with the targets at 0.9965–1.0000. Stop loss is 0.9850. Implementation period: 2-3 days.
The steady breakout of the level of 0.9878 will be the signal to open short positions with the target at 0.9800. Stop loss is 0.9920. Implementation period: 2-3 days.