USD/СHF: The pair may undergo correction
The currency pair USD/СHF continues to trade in the upward channel. Today the pair has reached three-month highs at the level of 0.8982. Even strong data on Swiss GDP for Q1 was not able to halt the rise in quotes. On the annual basis this index has reached the level of 2.0%, which was above experts’ expectations.
Due to lack of the important news today, trading will not be volatile; quotes may slowly go up to the levels of 0.9000 and 0.9030. However, on Thursday, the pair can undergo significant correction to the levels of 0.8960 and 0.8936, as on this day preliminary US GDP for Q1 will become known. It is expected that the index will drop by 0.2%, which will add pressure on the American currency.
Support and resistance
Technical indicators demonstrate that the pair will continue to rise. Bollinger bands are directed upwards. MACD histogram is in the positive zone; its volumes are increasing. Stochastic lines have crossed and are rising now.
Important resistance levels: 0.8982, 0.9000 and 0.9030.
Important support resistance levels: 0.8960 and 0.8936.
In the present context, it makes sense to open long positions from the current level of price with take profit at 0.9000. Pending orders to sell can be placed at the same level with take profit at the level of 0.8936.
Analyst of LiteForex Investments Limited