Current trend

The USD/CHF pair is preparing for growth, trading at 0.8508: the franc’s positions remain stable, confirmed by macroeconomic statistics.

Thus, in September, the national consumer price index fell by 0.3% to 107.2 points MoM and from 1.1% to 0.8% YoY due to cheaper travel abroad, hotel accommodation, gasoline, and diesel fuel. Among the goods that have become more expensive are clothing, footwear, fruits, and vegetables. Despite the confident slowdown in inflation, the labor market remains under pressure. The unemployment rate, excluding seasonal fluctuations, increased from 2.4% to 2.5%, and taking them into account, grew from 2.5% to 2.6%, which is almost the only negative factor for the country’s recovering economy.

The American dollar is not rising so confidently, trading at 101.40 in the USDX. Investors reacted positively to another increase in the Institute for Supply Management (ISM) non-manufacturing PMI from 51.5 to 54.9, the highest since February 2023. In addition, the indicator remains in the green zone for the third month. The non-manufacturing indicator reached 59.4, renewing the January record, compared to 57.3 last month.

Support and resistance

On the daily chart, the trading instrument is correcting in the sideways channel 0.8550–0.8390.

Technical indicators are weakening the sell signal: fast EMAs on the Alligator indicator are held below the signal line, and the AO histogram is forming ascending bars in the sell zone.

Resistance levels: 0.8550, 0.8670.

Support levels: 0.8460, 0.8370.

Trading tips

Long positions may be opened after the price rises and consolidates above 0.8550, with the target at 0.8670. Stop loss is around 0.8500. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 0.8460, with the target at 0.8370. Stop loss is 0.8500.