Apr 10, 2020, 9:37:14 AM

USD/CHF: general review

Current trend

USD today is trading flat against CHF, located not far from local lows since April 2. The markets in the US and Europe are closed due to Good Friday. Published macroeconomic statistics from the US puts pressure on USD. Yesterday, investors drew attention to the release of information on Initial Jobless Claims. For the week ending April 3, the number of applications amounted to 6.606M after 6.867M in the previous period with a forecast of 5.2M. Michigan Consumer Sentiment Index in April collapsed from 89.1 to 71 points, which also turned out to be worse than market expectations of 75 points.

Today, investors expect the publication of March statistics on consumer inflation in the US. In addition, closer to the end of the American session, the USA will publish a Monthly Budget Statement for March.

Support and resistance

Bollinger Bands in D1 chart decrease gradually. The price range is narrowing, reflecting ambiguous nature of trading in the short term. MACD is going down keeping a stable sell signal (located below the signal line). The indicator is trying to consolidate below the zero level. Stochastic is declining more actively, but is rapidly approaching its lows, signaling oversold USD in the ultra-short term.

Existing short positions should be kept in the short and/or ultra-short term until the situation is clear.

Resistance levels: 0.9684, 0.9765, 0.9847, 0.9900.

Support levels: 0.9647, 0.9600, 0.9500, 0.9454.

Trading tips

To open long positions, one can rely on the rebound from the support level of 0.9647 with the subsequent breakout of 0.9684 or 0.9700. Take-profit – 0.9800 or 0.9847. Stop-loss – 0.9630 or 0.9600.

The breakdown of 0.9647 or 0.9600 may serve as a signal to new sales with the target at 0.9500 or 0.9454. Stop-loss – 0.9684 or 0.9730.

Implementation time: 2-3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    0.9690, 0.9705

  • Take Profit

    0.9800, 0.9847

  • Stop Loss

    0.9630, 0.9600

  • Key Levels

    0.9454, 0.9500, 0.9600, 0.9647, 0.9684, 0.9765, 0.9847, 0.9900

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    0.9640, 0.9595

  • Take Profit

    0.9500, 0.9454

  • Stop Loss

    0.9684, 0.9730

  • Key Levels

    0.9454, 0.9500, 0.9600, 0.9647, 0.9684, 0.9765, 0.9847, 0.9900

Tifia trading account

Open

USD/CHF analysis for today.