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USD/CHF: general review 23 June 2017, 09:36


Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 0.9705
Take Profit 0.9640, 0.9550
Stop Loss 0.9765
Key Levels 0.9550, 0.9640, 0.9700, 0.9780, 0.9850, 0.9930, 1.0000
Alternative scenario
Recommendation BUY STOP
Entry Point 0.9780
Take Profit 0.9850, 0.9930
Stop Loss 0.9710
Key Levels 0.9550, 0.9640, 0.9700, 0.9780, 0.9850, 0.9930, 1.0000

Current trend
The pair USD/CHF has been trading in the narrow range between the levels of 0.9700 and 0.9780 for two weeks in a row although last week both regulators made decisions on the interest rate. The National Bank of Switzerland confirmed its directed against strong franc. FOMC, on the contrary, is using a tougher policy despite evident indicators of economic slowdown in the USA.
Yesterday Switzerland released its trading balance data which was much higher than expected and the highest in four months. On the other hand, USD was supported by the statement by FOMC representative Powell. That is why the pair was left in the narrow corridor, and the body of the daily candle did not exceed 5 points. This situation indicates the insecurity of investors that are waiting for clearer signals.
Today these signals may be formed by 15:45 (GMT+2) US releases: PMI that may increase in accordance with the forecast, and services PMI with expected fall. Moreover, the data on the sales of new houses in the USA is due at 16:00 (GMT+2). The forecast provides for the growth of the indicator by 28K. FOMC member Powell is to make a speach at 17:15 (GMT+2).
 The main outlook for today is the weakening of the pair.
Support and resistance
Resistance levels: 0.9780, 0.9850, 0.9930, 1.0000.
Support levels: 0.9700, 0.9640, 0.9550.


Trading tips
Short positions may be opened at the market price with targets at 0.9640, 0.9550 and stop-loss at 0.9765.
Alternatively, buy positions may be opened from 0.9780 with targets at 0.9850, 0.9930 and stop-loss at 0.9710.                           
Από το Blogger.