The USD/CHF pair shows an active upward trend against the background of a slight increase in the US dollar exchange rate, trading at 0.9185. The dollar index has not yet managed to leave the limits of the sideways range, which began its formation in mid-June, and at the moment it is trading at the level of 92.570.
USD/CHF Dollar Franc forecast for July 19-20, 2021
Yesterday, the US currency was supported by the publication of a report on the national labor market. The number of people who applied for unemployment benefits for the week decreased by 26 thousand, amounting to 360 thousand, which is the lowest indicator since the beginning of the COVID-19 pandemic. The National Ministry of Labor notes that the main influx of labor into the market may begin in the fall, when school and preschool education institutions will start working at full capacity.
Meanwhile, the Swiss currency is showing more stable dynamics. Economic activity in the country is gradually increasing, and, according to the latest data, the inflation of production prices for June reduced the growth rate to 2.9% in annual terms and to 0.3% in monthly terms. The yield on the bond market is also held at stable levels, and the rate on 10-year bonds at auction today reached the level of the beginning of spring at -0.335%.
Support and resistance levels
On the local chart, the price is adjusted upwards, being within a wide descending channel within the forex forecast. Technical indicators turned in the direction of growth: fast EMAS on the alligator indicator crossed the signal line from the bottom up, and the histogram of the AO oscillator moved into the buy zone.
Resistance levels: 0.9198, 0.9267.
Support levels: 0.9154, 0.9081
Trading Scenarios
Thus, USD/CHF forecast dollar franc on July 19-20, 2021, if the asset continues to grow, as well as the price fixes above the local resistance level at 0.9198, buy positions with a target of 0.9267 will be relevant. The stop loss should be set at 0.9160. Implementation period: 4 days.
If the global decline of the asset continues, as well as the price fixes below the local support level at 0.9154, it is important to open sell positions with a target of 0.9081. The stop loss should be set at 0.9190.