USD/CHF: pair overbought
Current trend
Switzerland’s export-oriented economy is under pressure amid a slowdown in the eurozone and China. Moreover, a strong national currency makes Swiss export less competitive.
Swiss inflation and retail sales growth have fallen to almost zero and industrial production has declined. At the same time, the Fed is expected to raise its interest rates at December meeting. These factors will keep the Swiss franc from growing in the USD/CHF pair.
Support and resistance
On the daily chart, the price is moving in an ascending channel between 1.0240 and 0.9800. Though the pair is overbought and is at its year highs, it still has a potential for growth.
On the daily, weekly and monthly charts, OsMA and Stochastic indicators recommend long positions. Nevertheless, on the 4-hour chart, Stochastic is starting giving a sell signal. Thus, a correction is possible to the support levels of 1.0120 (EMA50 and the lower border of an ascending channel on the 4-hour chart), 1.0000 (the middle of the channel on the daily chart and EMA144 on the 4-hour chart).
Support levels: 1.0120, 1.0000, 0.9880, 0.9800.
Resistance levels: 1.0240, 1.0300.
Trading tips
Short positions can be opened from the level of 1.0170 with targets at 1.0120, 1.0090, 1.0010 and stop-loss at 1.0210.
Long positions can be opened from the level of 1.0220 with targets at 1.0240, 1.0300 and stop-loss at 1.0190.
Switzerland’s export-oriented economy is under pressure amid a slowdown in the eurozone and China. Moreover, a strong national currency makes Swiss export less competitive.
Swiss inflation and retail sales growth have fallen to almost zero and industrial production has declined. At the same time, the Fed is expected to raise its interest rates at December meeting. These factors will keep the Swiss franc from growing in the USD/CHF pair.
Support and resistance
On the daily chart, the price is moving in an ascending channel between 1.0240 and 0.9800. Though the pair is overbought and is at its year highs, it still has a potential for growth.
On the daily, weekly and monthly charts, OsMA and Stochastic indicators recommend long positions. Nevertheless, on the 4-hour chart, Stochastic is starting giving a sell signal. Thus, a correction is possible to the support levels of 1.0120 (EMA50 and the lower border of an ascending channel on the 4-hour chart), 1.0000 (the middle of the channel on the daily chart and EMA144 on the 4-hour chart).
Support levels: 1.0120, 1.0000, 0.9880, 0.9800.
Resistance levels: 1.0240, 1.0300.
Trading tips
Short positions can be opened from the level of 1.0170 with targets at 1.0120, 1.0090, 1.0010 and stop-loss at 1.0210.
Long positions can be opened from the level of 1.0220 with targets at 1.0240, 1.0300 and stop-loss at 1.0190.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.