USD/CHF: USD is strengthening

Current trend

USD is showing active growth against CHF today, testing the level of 0.9130 for a breakout. USD is supported by the results of the Fed meeting, summed up on Wednesday. As expected, the regulator did not change the parameters of monetary policy, stressing that rates are likely to remain minimal until the inflation target is reached (and exceeded for a certain period of time). The head of the regulator Jerome Powell promised to use the full range of available instruments to support the US economy in the face of continuing risks. However, the Fed does not expect inflation of 2% until the end of 2023. The decline in GDP by the end of 2020 will be approximately 3.7%, which is much better than the June forecasts of 6.5%.

Support and resistance

Bollinger Bands in D1 chart show insignificant growth. The price range is actively narrowing from below, reflecting a sharp surge in "bullish" activity in the ultra-short term. MACD has reversed to growth again having formed a new buy signal (located above the signal line). Stochastic shows a similar scenario, having reversed upwards a little earlier. At the moment, the indicator is located approximately in the center of its area, which indicates a sufficient potential for the development of "bullish" dynamics in the ultra-short term.

The current showings of the indicators do not contradict the further development of the uptrend.

Resistance levels: 0.9138, 0.9160, 0.9200.

Support levels: 0.9115, 0.9100, 0.9081, 0.9049.

Trading tips

To open long positions, one can rely on the breakout of 0.9138. Take-profit – 0.9180. Stop-loss – 0.9115. Implementation time: 1-2 days.

A rebound from 0.9138 as from resistance followed by a breakdown of 0.9115 may become a signal for new sales with the target at 0.9081. Stop-loss – 0.9138. Implementation time: 2-3 days.