USDCHF: investors hesitating
1. Current trend
Yesterday macroeconomic news from USA didn’t meet the investors’ expectations. The released data were negative comparing to the forecasts. However dollar has strengthened its positions thanks to the speech of FRS chairman. He announced that inspite of economic recovery FRS is not going to curtail QE program until 2014. Indicators of the Bernanke’s success will be reports on Unemployment claims. Experts predict decrease of the index down to 344000 rate. If the actual rate is lower than that of the forecast, American currency will have an extra support.
2. Levels of support and resistance
Support levels are 0.9377 and 0.9407; resistance level will be at the local maximum (0.9454).
3. Technical indicators
Moving Average of MACD indicator has left the histogram zone. The histogram itself is in negative zone. There is a signal to buy. The other signal to buy has been formed by the crossing of bottom Envelopes line and the price chart.
4. Trading tips
I would recommend to buy at the current price with Take Profit orders at 38.2% Fibonacci line (0.9515). Stop Loss orders should be placed at 0.9377.
Analyst of LiteForex Group of Companies