USDCHF analysis of the week from January 13 to January 17, 2020 -

The basic elements

Last week, global investors had a better mood and built confidence in the process of reaching the end of the trade war, when the Chinese side officially confirmed that they would sit at the signing table. Phase one trade deal with the US. On weekends, a delegation of China's Ministry of Commerce led by Deputy Prime Minister Liu He will go to Washington on January 13-15, to sign a US-China trade agreement for the first phase.

Besides, when the Middle East is on the brink of war, the US and Iran's escalation of tensions has eased the situation. Money flowed out of safe-haven assets.

In the coming time, the US dollar could rise if there is much optimism from the signing of the US-China trade agreement and good retail data will reduce the possibility of the Fed cutting interest rates in early 2020.

EU-US trade tensions remain high and are currently causing many risks. However, an upcoming meeting could help mend relations between the two major economic entities. Inaugurated EU trade director Phil Hogan is planning to go to the White House to meet US Trade Representative Robert Lighthizer on January 16. Although the United States has made recent threatening moves, it is now Now, President Trump will likely adopt a softer approach. This can help the USD to appreciate.

Technical analysis

In terms of technical analysis, the USDCHF pair is still in the main downtrend on the weekly chart. The appreciation of the USD can help this pair move to the nearest Supply zone at 0.98. Here, the USDCHF pair can face large selling and reversal. However, if the price breaks out of this zone, it is likely that the price will approach the strong Supply area with the main down trend line at 0.997.


Sell ​​0.98

Stop loss 0.986

Take Profit 0.965

Recommendation: This is just a Trading Idea. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.

Author: Nguyen Chi Thanh