Buy Stop: Above 0,924
Stop Loss: Below 0,908
USD/CHF Chart Analysis
USD/CHF Technical Analysis
On the daily timeframe, USDCHF: D1 bounced off the lower border of the ascending channel and is moving towards the upper border. A number of technical analysis indicators have formed signals for further growth. We do not rule out a bullish movement if USDCHF rises above the last high: 0.924. This level can be used as an entry point. The initial risk limitation is possible below the last two lower fractals and the Parabolic signal: 0.908. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (0.908) without activating the order (0.924), it is recommended to delete the order: the market is undergoing internal changes that were not taken into account.
Fundamental Analysis of Forex – USD/CHF
Swiss National Bank (SNB) believes that the current inflation rate is moderate. Will the USDCHF quotes continue to rise?
SNB board member Andrea Maechler said that the current inflation is adequate and that it is holding back the strengthening of the Swiss franc. If necessary, SNB will carry out foreign exchange interventions in order to weaken the exchange rate. Investors decided that no tightening of the SNB’s monetary policy is expected in the foreseeable future, because the Swiss authorities are interested in a weak franc. In October 2021, inflation in Switzerland was the highest since April 2010 and amounted to 1.2% in annual terms. The SNB rate is now negative at -0.75%. In the United States, inflation in October was the highest in 30 years and amounted to 6.2% in annual terms. The FRS rate is now + 0.25%. However, unlike SNB, the US regulator plans to tighten monetary policy and is going to raise the rate twice next year. Switzerland is due out Thursday for October trade balance and Q3 industrial production. These data may affect the dynamics of the Swiss franc.
By – Dmitry Lukashev – IFC Markets