Daily chart

After breaking two important support areas located around 0.9166 and 0.9155 we saw that USDCHF continued more firmly in the bearish zone as the green line 3/8 that becomes the basis of the range. Quotes has been overcome and now the pair is trading at 0.9123 and it is likely that after a slight rebound to the area of the base of its trading range today, the Swiss franc will continue gaining ground against the U.S. dollar testing a new support around 0.9000

Switzerland's ZEW economic expectations report showed an improvement from 7.2 to 16.3 in August, reflecting higher optimism among institutional investors and analysts. This tends to be positive for the economy, as a stronger outlook could lead to more money flows and growth later on.

While the ZEW report provided support for the franc, what really triggered USDCHF 's tumble was the disappointing FOMC statement, which showed that the Fed DECIDED to provide no action this time. In addition, lower U.S. growth forecasts from the Fed also pushed the dollar lower.

H4 chart   

The 4 hour chart shows the Swiss franc moved about 124 pips achievement stopping just in its S - 3 located at 0.9126 below the baseline of its trading range demarcated by line 3/8 (green line). On the other hand, we also note that the pair has traded since opening this week below its 200-day moving average periods, so we may expect a fall below levels likely to 0.9000.

H1 chart

In 1 hour chart  USDCHF has been making a range below the green line 3/8 with a possible shift to its extreme online quote -1/8 (purple line).

Our suggestion: Based on analysis of the three charts, our suggestion for Thursday September 19 is:

Sell below: 0.9155

Stop loss at 0.9170

Take profit at 0.9000

If you have any questions or suggestions, please contact: 

Email:antonio.inga@analytics.instaforex.com

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