113
Currency Analyst since 2010

USD/CHF with Mark Jensen

   By Mark Jensen

Today my review will be technical. I'd like to mention only that USD/CHF is in a rather strong reverse correlation with EUR/USD. This is easily seen фt the charts, and the news from the US are more important for this pair than those from Switzerland.

USD/CHF keeps trading in the 0.9400 area (61.8% Fibo of the decline from 0.9800 to 0.8700). Despite the fact that the overall trend is bullish and rather strong, the pair is capped by this mark for the third week: the bulls lack upwards momentum.

There’s bearish divergence on the daily MACD and RSI. The bears tried to make a use of it yesterday, but the initial decline was followed by buying and a candle with a long lower shadow was formed on the daily chart.

Support is at 0.9325 (55-month MA) and $0.9300. A fall below 0.9300 will signal the temporary top with target at 0.9210. A fix above 0.9420 is needed to make USD/CHF aim to 0.9500 and higher.

Sum up: The medium term outlook is bullish, and we expect the pair to break higher. At the same time, geopolitical risks may postpone this break for some time. Credit Suisse has a buy limit order at 0.9323 with take profit at 0.9450 and stop loss at 0.9280.

 

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