The USD/CHF returned to strengthening on Tuesday, recovering from yesterday's decline caused by a weak report on durable goods orders in the US.
According to the statistics, volumes for January were down 4.5% compared to the forecast (-4.0%). At the same time, without defense and aircraft orders, the index rose 0.8%, the best performance in five months.
The Dallas Fed manufacturing index fell from (-8.4) to (-13.5), which was in line with market expectations.
U.S. business activity indexes and February consumer confidence are released today. Switzerland will release its fourth quarter GDP report. A 1.2% decline in annualized terms and a 0.2% to 0.3% growth in quarterly terms is expected.
USD/CHF Technical analysis
Bollinger Bands are rising steadily, as well as MACD histogram, which has shifted into positive area. Stochastic oscillator from above downward is testing the 80% level and may come out of the overbought area.
It is advisable to buy after the pair has consolidated above the key resistance level of 0.9400. Take profit is set at 0.9500. Stop loss is at 0.9350.
Sell at breakdown below 0.9350. Nearest target is at 0.9250. Stop-loss is taken out at 0.9400.