USD/CHF: the pair is trading in both directions
Current trend
USD was trading in a downward direction against CHF on Monday. However, by the end of the session, the instrument managed to win back the majority of its losses, and today USD is growing.
A situation around the US-China trade relations which may worsen after the meeting of the G7 leaders this week, puts pressure on USD. The PRC adds more negative to the situation. Chinese authorities warned that they could refuse to implement the agreements reached earlier if Donald Trump introduces new duties on Chinese goods. At the talks in Washington in mid-May, China agreed to reduce the US trade deficit by USD 200 billion, thereby fulfilling one of the key requirements of the US. However, after this, Trump threatened to introduce new import duties, which put the agreement on the brink of failure.
Support and resistance
Bollinger Bands in D1 chart decrease. The price range is narrowing, reflecting mixed dynamics of trading in the ultra-short term. MACD is declining keeping a weak sell signal (located below the signal line). The indicator is trying to gain a foothold below the zero mark. Stochastic shows oscillatory dynamics near its minimum levels, which indicates a possible oversold dollar in the short term.
One should wait for the final formation of "bullish" signals in the short and/or ultra-short term.
Resistance levels: 0.9910, 0.9940, 0.9967, 1.0000.
Support levels: 0.9869, 0.9850, 0.9825, 0.9800.
Trading tips
To open long positions one can rely on the breakout of the level of 0.9910, while maintaining "bullish" signals from technical indicators. Take-profit – 0.9950 or 0.9967. Stop-loss – 0.9880.
A breakdown of the level of 0.9869 or 0.9850 may become a signal for further sales with target at 0.9825 or 0.9800 marks. Stop-loss – 0.9880 or 0.9900.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.9915
Take Profit 0.9950, 0.9967
Stop Loss 0.9880
Key Levels 0.9800, 0.9825, 0.9850, 0.9869, 0.9910, 0.9940, 0.9967, 1.0000
Alternative scenario
Recommendation SELL STOP
Entry Point 0.9860, 0.9845
Take Profit 0.9825, 0.9800
Stop Loss 0.9880, 0.9900
Key Levels 0.9800, 0.9825, 0.9850, 0.9869, 0.9910, 0.9940, 0.9967, 1.0000
USD was trading in a downward direction against CHF on Monday. However, by the end of the session, the instrument managed to win back the majority of its losses, and today USD is growing.
A situation around the US-China trade relations which may worsen after the meeting of the G7 leaders this week, puts pressure on USD. The PRC adds more negative to the situation. Chinese authorities warned that they could refuse to implement the agreements reached earlier if Donald Trump introduces new duties on Chinese goods. At the talks in Washington in mid-May, China agreed to reduce the US trade deficit by USD 200 billion, thereby fulfilling one of the key requirements of the US. However, after this, Trump threatened to introduce new import duties, which put the agreement on the brink of failure.
Support and resistance
Bollinger Bands in D1 chart decrease. The price range is narrowing, reflecting mixed dynamics of trading in the ultra-short term. MACD is declining keeping a weak sell signal (located below the signal line). The indicator is trying to gain a foothold below the zero mark. Stochastic shows oscillatory dynamics near its minimum levels, which indicates a possible oversold dollar in the short term.
One should wait for the final formation of "bullish" signals in the short and/or ultra-short term.
Resistance levels: 0.9910, 0.9940, 0.9967, 1.0000.
Support levels: 0.9869, 0.9850, 0.9825, 0.9800.
Trading tips
To open long positions one can rely on the breakout of the level of 0.9910, while maintaining "bullish" signals from technical indicators. Take-profit – 0.9950 or 0.9967. Stop-loss – 0.9880.
A breakdown of the level of 0.9869 or 0.9850 may become a signal for further sales with target at 0.9825 or 0.9800 marks. Stop-loss – 0.9880 or 0.9900.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.9915
Take Profit 0.9950, 0.9967
Stop Loss 0.9880
Key Levels 0.9800, 0.9825, 0.9850, 0.9869, 0.9910, 0.9940, 0.9967, 1.0000
Alternative scenario
Recommendation SELL STOP
Entry Point 0.9860, 0.9845
Take Profit 0.9825, 0.9800
Stop Loss 0.9880, 0.9900
Key Levels 0.9800, 0.9825, 0.9850, 0.9869, 0.9910, 0.9940, 0.9967, 1.0000