Continuing contraction in Switzerland’s manufacturing sector bullish for USDCHF
Technical Analysis Summary USD/CHF: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Neutral | |
| MA(200) | Sell | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On 1-hour timeframe USDCHF: H1 is rising toward the 200-period moving average MA(200) which is falling. We believe the bullish movement will continue after the price breaches above the upper bound of the Donchian channel at 0.9653. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 0.9627. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
Switzerland’s manufacturing sector contraction continued. Will the USDCHF continue rising?
Switzerland’s manufacturing sector contraction accelerated in April: the manufacturing PMI declined to 40.7 from 43.7 in March, according to Procure trade association for purchasing and supply management. Readings below 50 indicate industry contraction. This is bullish for USDCHF.