USD/CHF key support at 1.0224, bullish in the short term
The USD/CHF rebounded from 1.0252 levels, erasing the earlier losses, after US ISM manufacturing PMI data released from the US market printed negative figures. The short term picture depicts more bullish trend for this pair, as the pair is supported by rising trend line, the relative index in the 4 hour chart is slightly pointing downwards, the 55, 30 and 20 MA’s is indicating upward momentum. Overall the technical indicators are depicting more upside for this pair.
On the data front, US is will release ADP Nonfarm Employment Change data on Wednesday, forecasted at 190k from the previous reading of 182k, and if the data prints negative figures, the pair could test the trend line support.
To the upside, the strong resistance can be seen at 1.0288, a break above this level would take the pair towards next resistance level at 1.0344.
To the downside immediate support can be seen 1.0224, a break below this level will take the pair to next level at 1.0195.
Recommendation: Go long above 1.0230, targets 1.0300, 1.0350, SL 1.0195
Support levels: 1.0224, 1.0197, 1.0144
Resistance levels: 1.0288, 1.0320, 1.0344
On the data front, US is will release ADP Nonfarm Employment Change data on Wednesday, forecasted at 190k from the previous reading of 182k, and if the data prints negative figures, the pair could test the trend line support.
To the upside, the strong resistance can be seen at 1.0288, a break above this level would take the pair towards next resistance level at 1.0344.
To the downside immediate support can be seen 1.0224, a break below this level will take the pair to next level at 1.0195.
Recommendation: Go long above 1.0230, targets 1.0300, 1.0350, SL 1.0195
Support levels: 1.0224, 1.0197, 1.0144
Resistance levels: 1.0288, 1.0320, 1.0344