USD/CHF: growth continues

September 24, 2015

Current trend

The USD is strengthening against most currencies and the CHF is no exception.

Recent comments, given by the US official, confirm that the Federal Reserve is still confident on the prospects of the US economic growth and sees no reason to delay a rate hike. Moreover, the USD/CHF pair gained support from exports statistics, released in Switzerland. In August, the indicator fell from 17965 million to 14232 million that negatively affected a trade surplus, which declined from 3579 million to 2869 million.

Support and resistance

Bollinger Bands indicator on the daily chart is moving slightly up. The price range is widening, but the pair is trading near the upper MA. MACD is growing and keeping a buy signal. Stochastic is in the overbought zone and is starting turning down.

According to the indicators, long positions are still valid, however, a downward correction is likely to start in the short run.

Support levels: 0.9762, 0.9717, 0.9688, 0.9649, 0.9600, 0.9568, 0.9524 (18 September local low), 0.9500, 0.9460, 0.9400, 0.9330, 0.9300, 0.9257 (24 August low).

Resistance levels: 0.9800, 0.9822 (9 September local high), 0.9862, 0.9900 (11 August high), 0.9930.

Trading tips

Long positions can be opened after the breakout of the level of 0.9800 (with appropriate indicators signals) with the target at 0.9880 and stop-loss at 0.9770. However, at present, the indicators do not support the pair growth. Validity: 2-4 days.

The pair is more likely to decline during a downward correction. Short positions can be opened only after the consolidation below the level of 0.9740 with the target at 0.9660 and stop-loss at 0.9780. Validity: 2 days.

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