Current trend
During the trading session on Tuesday, December, 6 the US dollar has grown significantly again the Swiss franc, partially compensating its fall earlier this week, which led it to the new local minimum.
The American currency is supported by the anticipation of the interest rate rise. The December FRS meeting is due at December, 13-14, and now the possibility of tightening the monetary policy is around 93%. The franc is still under the pressure of the Swiss CB monetary police and is not predicted to grow against the ECB meeting the next Thursday.
The Swiss macroeconomic statistics affected the trading session on Tuesday mildly. The Consumer Price Index has decreased by 0.2% MoM against the growth in the previous month by 0.1% MoM. Correspondingly, the consumer inflation has fallen by -0.3% YoY in November, which is by 0.1% worse than expected.
There are few macroeconomic data to be released on this week. The most interesting statistic is the employment data due on December 9 (Friday), in particular, the November unemployment rate index.
Support and resistance
Resistance levels: 1.0123 (the nearest level), 1.0144, 1.0181 (maximum of the December, 5) and 1.0203 (maximum of the November, 30).
Support levels: 1.0100 (actively tested during the morning session on December, 7), 1.0077 (minimum of November, 28), 1.0048 (minimum of December, 5-6), 1.0000 (strong psychological level), 0.9971, 0.9950.
On the daily chart, the Bollinger Bands® indicator is slightly reversing flat. The price range is going to fix in the narrow channel. It is recommended to prefer the channel trade strategy.
The MACD keeps strong downward trend with a sell signal (the histogram is below the signal line). It’s better to keep current short positions, but it’s not recommended to open new ones.
The Stochastic is in the overbought area. It tries to reverse upwards, so the correction growth is possible in the short or very short term.
Trading tips
If the indicators don’t contradict with the “bullish” trend, it is recommended to open long positions at the breakout of 1.0100-1.0123 level. Take profit is at 1.0203. Stop loss is at 1.0050-1.0070. Implementation period: 2-3 days.
The alterative is the returning of strong “bearish” trend with a downwards breakout at 1.0048. It that case you can reverse in selling with the target at 0.9950-0.9928. Stop loss is at 1.0100. Implementation period: 2-3 days.