Current trend
The USD/CHF pair has declined notably, stepping away from its record highs. The Swiss Franc was strengthening during last week, but the strongest rise was seen on Thursday, when the US Dollar was under pressure amid the publication of ECB meeting results and the Fed’s Chair Janet Yellen speech.
On Friday, the American currency managed to gain back some of its losses, but analysts suggest it was the result of traders taking profits. Nonetheless, November’s US labor market statistics slightly exceeded the forecast. Non-farm Payrolls came in at 211K against 200K forecast. At the same time, the indicator declined notably from 298K in the previous month.
Support and resistance
On the daily chart, the price has left the lower border of the Bollinger Bands indicator. MACD keeps its strong downward trend. Stochastic is in the oversold zone and trying to turn up.
Bollinger Bands and Stochastic indicate possibility of an upward correction in the short term.
Support levels: 0.9956, 0.9930, 0.9900, 0.9873 (3 December low), 0.9822 (28 October low), 0.9800, 0.9774.
Resistance levels: 1.0000, 1.0032 (4 December high), 1.0075, 1.0100, 1.0120, 1.0142, 1.0177, 1.0224.
Trading tips
Long positions can be opened after the breakout of the level of 1.0000 (with appropriate indicators signals) with the target at 1.0100 and stop-loss at 0.9950. Validity – 2-3- days.
Short positions can be opened if the price rebounds down from 1.0000 and reaches the level of 0.9960 with the target at 0.9873 and stop-loss at 1.0000. Validity – 2-3- days.
