USD CHF Technical Analysis | USD CHF Trading: 2017-09-22 | IFCM
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USD CHF Technical Analysis - USD CHF Trading: 2017-09-22

Slower growth outlook bearish for Swiss franc

Swiss economic growth outlook was due to weak performance in the first half of the year. Will the USDCHF continue rebounding?

The Swiss National Bank decided to keep the target range for the three-month Libor at between minus 1.25% and minus 0.25% at its 14 September meeting. The Q2 Swiss GDP grew 0.3% on quarter from downwardly revised 0.1% growth in first quarter. Economic growth in annual terms slowed though as second quarter GDP dropped to 0.3% year-on-year from 0.6% in first three months of 2017. And the State Secretariat for Economic Affairs said on Thursday it now expects economic growth of 0.9% in 2017, below its June forecast of 1.4 %. Slower growth outlook is bearish for Swiss franc.

USDCHF

The USDCHF is rising on the daily chart after hitting twelve month low two weeks ago.

  • The Parabolic indicator gives a buy signal.
  • The Donchian channel signals uptrend: it is tilted up.
  • The MACD indicator is above the signal and the gap is widening, which is a bullish signal.
  • The stochastic oscillator is rising, but hasn’t reached the overbought zone.

We believe the bullish momentum will continue after the price breaches above the upper Donchian bound at 0.9747. This level can be used as an entry point for a pending order to buy. The stop loss can be placed below the fractal low at 0.9564. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

PositionBuy
Buy stopAbove 0.9747
Stop lossBelow 0.9564

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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