Key Levels For The USD/CHF - Forex News by FX Leaders
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Key Levels For The USD/CHF

Posted Thursday, August 1, 2019 by
Shain Vernier • 1 min read

Today has been a bit of a rollercoaster for the Greenback. An early-session rally has given way to weakness, with values off intraday highs across the majors. One prime example of this phenomenon is the USD/CHF. Rates are falling and appear poised to close on a negative note. This afternoon’s post-FED forex close may prove to be a challenging one for the U.S. dollar.

The next 24 hours are going to be pivotal for the Swissy. Switzerland’s CPI (July) is due out during the overnight and U.S. Non-Farm Payrolls is scheduled for Friday’s pre-market hours. Swiss CPI (July) is expected to fall on a monthly (-0.3%) and yearly (0.5%) basis, while U.S. NFP is projected to fall by 60,000 jobs. If there are any surprises in these areas, the USD/CHF will test either 1.0000 or .9900.

Key Levels For The USD/CHF

For the USD/CHF, rates are very likely to consolidate in the .9900-1.0000 area for the near future. Given the recent strength of the USD, a moderate retracement may bring a buying opportunity into play sooner rather than later.

USD/CHF, Daily Chart
USD/CHF, Daily Chart

Here are the levels to watch for the Swissy:

  • Resistance(1): Psyche Level, 1.0000
  • Support(1): Daily SMA, .9880
  • Support(2): Bollinger MP, .9879

Bottom Line: With a bit of luck, the coming news cycle will spike the action in the USD/CHF. If so, a buy from downside support is a viable trading opportunity. Until Friday’s closing bell, I will have buy orders in queue from .9889. With an initial stop at .9873, this trade produces 32 pips on a 1:2 risk vs reward management plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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