Current trend

After yesterday’s active growth of the American dollar against consumer inflation statistics, today, during the Asian session, the USD/CHF pair is declining again.

The September level of price growth decreased from 0.6% to 0.4% MoM, which is 0.1% worse than expert forecasts, and remained at 3.7% YoY, while analysts expected it to slow down to 3.6 %, which implies a longer period of maintaining high interest rates by the US Federal Reserve, and also increases the likelihood of another tightening of monetary policy this year.

On Friday, investors expect the publication of the monthly report on the state of the American budget for August, as well as the consumer confidence index from the Michigan Institute for October: according to preliminary estimates, it will decrease from 68.1 points to 67.4 points. September statistics on inflation and foreign trade will come from Switzerland: previous data reflected a decrease in the producer price index and imports by 0.2% and 0.8%.

Support and resistance

On the daily chart, Bollinger bands reverse a downward plane: the price range expands from below, letting the “bears” renew local lows. The MACD indicator is declining, maintaining a poor sell signal (the histogram is below the signal line). Stochastic is actively growing, reacting to the emergence of “bullish” dynamics, and reflects the possibility of developing a full-fledged upward trend in the ultra-short term.

Resistance levels: 0.9072, 0.9100, 0.9130, 0.9150.

Support levels: 0.9050, 0.9025, 0.9000, 0.8976.

Trading tips

Short positions may be opened after a breakdown of 0.9050 with the target at 0.9000. Stop loss – 0.9072. Implementation time: 1–2 days.

Long positions may be opened after growth and a breakout of 0.9100 with the target at 0.9150. Stop loss – 0.9072.