Recommendation for USD/CHF: Buy
Buy Stop: Above 0.9280
Stop Loss: Below 0.9149
| Indicator | Signal |
|---|---|
| MACD | Buy |
| Donchian Channel | Buy |
| MA(200) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
| On Balance Volume | Neutral |
Chart Analysis
The technical analysis of the USDCHF price chart on daily timeframe shows USDCHF,Daily is rebounding above the 200-period moving average MA(200) which is starting to rise. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 0.9280. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 0.9149. After placing the order, the stop loss is to be moved to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis
Swiss economic data have been mixed in the last couple of weeks. Will the USDCHF price break out of the current trading range?
Statistical data in the last couple of weeks paint an ambivalent picture of Swiss economic performance. Thus, retail sales fell in July when an increase was expected. However, producer and import prices as well as consumer prices rose more than expected in August. The Swiss Federal Statistical Office reported retail sales shrank 2.6% over year in July after 0.1% growth in June when 1.1% increase was expected. At the same time Consumer Price Index in Switzerland increased 0.9% over year in August after 0.7% growth in July, when 0.8% increase was expected. This is bearish for USDCHF. However technical setup is bullish for USDCHF.