USDCHF probability of a growth asset remains

USDCHF probability of a growth asset remains, After last week’s correction to the area of 0.9180–0.9160, USD/CHF quotes continue their upward trend against the background of the publication of data on a decrease in unemployment rate in the USA last month by 0.3%.

Last Friday, statistics on the US labor market were released. The dynamics of changes in the number of people employed in the non-agricultural sector disappointed investors and amounted to only 210K instead of the 550K predicted by analysts. However, the markets were able to recover from a short-term correction in the USD, playing back data that recorded a decrease in the unemployment rate in the country.

The indicator was 4.2% with a forecast of 4.5%. According to key indicators, the national economy continues to approach the pre-crisis levels of the beginning of last year, which has a strengthening effect on the US currency.

The long-term trend in USD/CHF is upward with the aim of growth near the November high of 0.9360. The key trend support is located at 0.9089.

The mid-term trend changed to a downward one last week after the breakdown of the key support at 0.9258–0.9247 and the price-fixing below it. Now the target for sales is target zone 2 (0.9147–0.9136). The price of USD/CHF is being adjusted and is trying to test the trend boundary of 0.9280-0.9269. The most optimal entrances to sales transactions are located in the area of 0.9280-0.9247.

Support and resistance

Resistance levels: 0.9360, 0.9434.

Support levels: 0.9119, 0.9089.

Short positions may be opened from the level of
0.9270 with targets at 0.9150 and stop-loss at
0.9305.

Implementation time: 7-10 days.
Long positions can be opened above 0.9305 with
target at 0.9400 and stop-loss at 0.9270.

Scenario:

Recommendation
SELL LIMIT
Entry point 0.9270
Take Profit 0.9150
Stop Loss 0.9305
Key levels
0.9089, 0.9119, 0.9360, 0.9434

Alternative Scenario:

Recommendation

BUY STOP
Entry point 0.9310
Take Profit 0.9400
Stop Loss 0.9270
Key levels 0.9089, 0.9119, 0.9360, 0.9434

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