Current trend

Having reached a maximum of 0.9230, the USD/CHF pair entered a downward correction and is approaching the support level of 0.8960.

The downward trend is developing against a weakening American dollar after yesterday’s publication of macroeconomic statistics: the September producer price index fell from 0.7% to 0.5%, higher than the forecast of 0.3%, as a result of which expectations for maintaining the US Federal Reserve interest rate in November increased from 86.8% to 91.5%. Meanwhile, the franc strengthened, supported by the publication of procure.ch manufacturing activity indicator for the same period, which reached 44.9 points, exceeding expectations of 40.5 points and the previous value of 39.9 points.

The long-term trend remains upwards, and now a correction is developing to the support level of 0.8960, after reaching which, purchases with the target at the resistance level of 0.9130 are relevant. In case of a breakdown of 0.8960, the decline will continue to the area of 0.8830 and 0.8715, where accumulation of positions may occur before further growth.

The medium-term trend is upwards with the target in zone 3 (0.9335–0.9310) but at the moment, as part of the correction, the quotes have reached the key trend support area of 0.8998–0.8974, where long positions with the first target at last week’s high of 0.9240 will become relevant. After a breakdown of the support area, the priority for trading will change downwards, and short positions with the target in zone 2 (0.8764–0.8742) are relevant.

Support and resistance

Resistance levels: 0.9130, 0.9230, 0.9330.

Support levels: 0.8960, 0.8830, 0.8715.

Trading tips

Long positions may be opened from 0.8960 with the target at 0.9130 and stop loss around 0.8900. Implementation time: 9–12 days.

Short positions may be opened below 0.8900 with the target at 0.8715 and stop loss around 0.8980.