Weekly chart
U.S. President Barack Obama signed the bill passed by Congress to reopen the government and raise the debt limit, which prevents the country from a debt default, the White House said in a statement. Thus, the 16-day shutdown ended.
The plan extends the government funding until January 15 and increases the debt ceiling until February 7.
In the vote of the Senate, the plan passed with 81 votes in favor and 18 against. In the House, the final vote was 285 in favor to 144 against.
As a result of this data, the U.S. dollar losing ground term its other counterparts and USD/CHF were no exception. So the pair collapsed around 100 pips from its opening line leaning back in 2/8 (red line) in our weekly chart, which is considered a strong point of reversal, so technically the USD/CHF should resume upward path from this area.
Daily chart
The similar daily chart shows the USDCHF has found support at 0.9033 this morning. Since line 0/8 (blue line) is considered as a line of support / resistance line, it is very difficult to break plus the previous media exist in this area, our view is that the USD / CHF would rise from these levels and instead would have to trade down to 0.8967 which was the previous low for this scenario to change and be a downtrend. So our suggestion is to go with orders above 0.9033.
H1 chart
Finally the 1-hour chart shows USDCHF found support in its third daily support (S -3) located at 0.9017 area which also found support in the previous days. Moreover, we can also observe that in this time frame the price hovers around the bottom line of its trend channel in this time frame is lateral.
Our recommendation: Based on our analysis, our suggestion for the medium term is:
Buy up to: 0.9017
Stop loss in: 0.8950
Take Profit at: 0.9170
If you have any questions or suggestions, please contact: Email:antonio.inga@analytics.instaforex.com
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