Current trend
Yesterday, USD was trading mixed against CHF, interrupting the “bullish” dynamics of the beginning of the week.
Monday's US ISM Manufacturing PMI was positive. In June, the indicator grew from 58.7 to 60.2 points. However, in general, the US currency stays under pressure. The German government migration crisis was resolved by a compromise between the CDU and the CSU, which led to European competition. Also, investors are waiting for the big trade war between the US and China. The introduction of reciprocal trade taxes is expected on Friday, but on Tuesday, the US administration made a new move. The National Telecommunications and Information Administration of the United States recommended the rejection of the Chinese mobile operator China Mobile for work in the country for national security reasons. Earlier, another large Chinese company, ZTE, suffered from US sanctions. Probably, this step will worsen US-China trade relations.
Support and resistance
On the daily chart, Bollinger bands are moving flat. The price range is slightly narrowed from above, reflecting the mixed dynamics and the market activity fall. MACD decreases, keeping a weak sell signal (the histogram is below the signal line), and is preparing to test the zero line. After a short decline, Stochastic turned horizontally in the middle of its working area.
It is better to wait until the situation is clear.
Resistance levels: 0.9910, 0.9940, 0.9963, 1.0000.
Support levels: 0.9888, 0.9853, 0.9820, 0.9800.
Trading tips
Long positions can be opened after a rebound at 0.9888 and breakout at 0.9910 with the target at 0.9963 or 1.0000 and stop loss 0.9880–0.9875.
Short positions can be opened after the breakdown of the level of 0.9888 with the targets at 0.9850 or 0.9835–0.9820 and stop loss 0.9920.
Implementation period: 2–3 days.