Forex Depth Analysis: USD/CHF

Swiss franc finally beaten as dollar starts to recover.

The dollar rallied on Thursday after payroll data suggested the U.S. job market and economy are not as dire as many investors had feared, while the European Central Bank president struck a less aggressive tone on prospects for interest rate hikes.

Demand for the greenback started to rise after the U.S. jobs report for June landed largely as forecast and nowhere close to a scenario feared by investors.

The following technical analysis gives us a detailed lookout on what is expected to happen to USD/CHF.

The buying point is at 1.0255; based on a break of a downtrend line.

• Fibonacci 61.8% is the take profit at 1.0346
• Fibonacci 23.6% is the stop loss at 1.0205

The selling point is at 1.0190; based on a break of a strong support level.

• Previous support is the take profit at 1.0118
• Fibonacci 50% is the stop loss at 1.0303

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the divergences on MACD. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a bullish direction.

The ROC (Rate of Change) is very important to understand the demand of the market and as we see on the graph it is clear uptrend. The Stochastic oscillator crosses %D line and breaks 20% level upwards.

* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.

Finotec Group Inc.
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