02.04.202014:21 Analysis and trading ideas for USD/CHF on April 2, 2020

Hello, traders!

Despite the fact that the dollar/franc is not very popular, it is one of the main currency pairs of the Forex market, so it would not be quite correct to ignore USD/CHF.

The USD/CHF pair contains two currencies that are extremely popular in times of crisis. The Swiss franc is a safe haven currency, while the US dollar is the world's reserve currency and, at times, is also considered a protective asset. Based on this scenario, the situation for the USD/CHF currency pair is prone to frequent changes. However, to see this clearly, let's look at the price charts.


Exchange Rates 02.04.2020 analysis

Something unimaginable is happening in this timeframe, in the usual sense of price movement. After falling to 0.9183, the pair changed its trend and started to grow. However, after reaching a strong and significant technical level of 0.9900, the price direction changed again, and the pair started a downward trend.

But, as they say, the music didn't last long. Last week, the quote fell significantly, and a large black candle appeared on the weekly chart.

Briefly for this time period. To continue bullish sentiment, it is definitely necessary to break through the mark of 0.9900 and gain a foothold above this level. I will express my personal opinion, this is a very difficult task for the USD/CHF bulls, even though the US dollar is once again returning to the leading position in the Forex market.

However, for a bearish trend, a truly titanic effort is required, which is reduced to a decrease in the quote to the strong support of 0.9183 and a breakdown of this level.

In this situation, it is logical to assume that the dollar/franc will be trading in the range of 0.9900-0.9183 for some time. This is absolutely not a narrow trading range, and it is definitely possible to work within it, opening deals for buying and selling. We will analyze the options for opening positions in smaller time intervals.


Exchange Rates 02.04.2020 analysis

Here you can clearly see the change in the mood of market participants. After rising to 0.9900, the pair fell to another very significant level for the market of 0.9500, from where it tries to continue growing again. And so far, at the time of writing this article, the bulls for USD/CHF are getting it.

The pair is currently trading near 0.9666 and has met strong resistance in the form of 50 simple moving average. It should be noted that this moving average cannot be broken for the third day in a row. However, today's trading is still far from complete, so the chances of breaking 50 MA remain quite real. I believe that this will determine the further direction of the quote.


Exchange Rates 02.04.2020 analysis

Looking at this timeframe, the situation for making trading decisions is extremely difficult. At the moment, the USD/CHF pair is trading between 50 MA (resistance) and 89 with 200 EMA representing support. Given the demand for the US currency and the ambiguous technical picture for the USD/CHF pair, I would venture to assume that the main trading idea for this instrument is to buy at a decline in the area of 0.9650-0.9600.

Good luck with trading!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Ivan Aleksandrov,
Analytical expert
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