USD/CHF: Technical Analysis Report 05 March 2021

Mar 05, 2021

Current Trend:

 USD is marginally higher against CHF during today’s Asian session, consolidating near record highs since July 2020, updated the day before. Investors continue to show high interest in “safe” assets, responding to the controversial situation in the bond market and fearing the introduction of new measures from leading financial regulators.

 In particular, the attention of market participants on Thursday was focused on the speech of the US Fed Chair, Jerome Powell. The Chairman of the American regulator made a very optimistic speech, practically without touching upon the urgent topic of growth in the yield of US Treasury bonds. The official noted that the early opening of the economies will lead to a noticeable increase in inflation, which serves as one of the main guidelines for maintaining minimum interest rates. Immediately after Powell’s speech, bond yields rallied again, pushing the major Wall Street indices down.

 Support And Resistance

 Bollinger Bands in D1 chart show stable growth. The price range is expanding but it fails to catch the development of “bullish” trend at the moment. MACD indicator is growing preserving a stable buy signal (located above the signal line). Stochastic retains upward direction, but is located near its highs, which indicates risks of overbought USD in the ultra-short term.

 Existing long positions should be kept in the short and/or ultra-short term until the signals from technical indicators clear up.

 Resistance levels: 0.9300, 0.9350, 0.9400.

Support levels: 0.9250, 0.9200, 0.9163, 0.9126.

 Trading Tips

 To open long positions, one can rely on the breakout of 0.9300. Take-profit – 0.9400. Stop-loss – 0.9250. Implementation time: 1-2 days.

 A rebound from 0.9300 as from resistance followed by a breakdown of 0.9250 may become a signal for new sales with the targets at 0.9126–0.9100. Stop-loss – 0.9320.


 Timeframe: Intraday

Recommendation: Buy Stop

Entry Point: 0.9305

Take Profit: 0.9400

 Stop Loss: 0.9250

Key Levels: 0.9126, 0.9163, 0.9200, 0.9250, 0.9300, 0.9350, 0.9400

 Alternative Scenario

 Timeframe: Intraday

Recommendation: Sell Stop

Entry Point: 0.9245

Take Profit: 0.9126, 0.9100

Stop Loss: 0.9320

Key Levels: 0.9126, 0.9163, 0.9200, 0.9250, 0.9300, 0.9350, 0.9400