USD/CHF: general review

Current trend

USD shows a slight increase against CHF during today's Asian session, correcting after a sharp decline in the instrument yesterday. The pair adds about 0.04%. Pressure on USD was exerted by macroeconomic data on consumer inflation from the US. Consumer Price Index in the US in December grew by 0.2% MoM, slowing down from the previous value of 0.3% MoM. Core Consumer Price Index in December slowed from 0.2% MoM to 0.1% MoM. In annual terms, however, the price index rose in December from 2.1% YoY to 2.3% YoY.

During the day, investors expect the publication of statistics on US Production Inflation for December. Also today, a formal signing of a trade agreement between the United States and China should take place.

Support and resistance

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is narrowing, reflecting the flat dynamics of trading in the short term. MACD reversed into a descending plane, having formed a new sell signal (located below the signal line). Stochastic keeps a confident downward direction but is rapidly approaching its lows, which indicates the oversold USD in the ultra-short term.

Existing short positions should be kept in the short term until the situation clears up.

Resistance levels: 0.9702, 0.9743, 0.9769, 0.9792.

Support levels: 0.9664, 0.9645, 0.9600.

Trading tips

To open long positions, one can rely on the rebound from the support level of 0.9664, with the subsequent breakout of 0.9702. Take profit – 0.9769. Stop loss – 0.9664. Implementation time: 2-3 days.

The breakdown of 0.9664 may serve as a signal to new sales with the target at 0.9600. Stop loss – 0.9702. Implementation time: 1-2 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    0.9705

  • Take Profit

    0.9769

  • Stop Loss

    0.9664

  • Key Levels

    0.9600, 0.9645, 0.9664, 0.9702, 0.9743, 0.9769, 0.9792

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    0.9660

  • Take Profit

    0.9600

  • Stop Loss

    0.9702

  • Key Levels

    0.9600, 0.9645, 0.9664, 0.9702, 0.9743, 0.9769, 0.9792

Tifia trading account

Open

USD/CHF analysis for today.