Current dynamics

After rising to 0.8957, the USD/CHF pair corrected to the 0.8800 region and will likely continue its downward movement this week, supported by macroeconomic reports.

Thus, in November, the index of leading economic indicators from the Swiss Economic Institute (KOF) amounted to 101.8 points, exceeding the forecast of 100.1 points and the previous value of 99.7 points. The volume of gross domestic product (GDP) in the third quarter amounted to 0.4% in quarterly terms, as experts expected, and reached 2.0% - in annual terms relative to expectations of 1.8%, allowing the USD/CHF pair to head towards the support area of 0.8625.

The long-term trend is downward, but from October to November a correction developed, within which the price tested the resistance level of 0.8920 and dropped to 0.8800, which it has not yet been able to overcome. In case of consolidation below it, reaching the area of 0.8625 and 0.8520 is likely. If quotes continue to consolidate above the resistance level of 0.8920, long positions with a target of 0.9050 will become relevant.

The medium-term trend is upward: the asset has tested zone 2 (0.8921–0.8892) twice and went into a correction, within which this week the price may reach the trend support area of 0.8726–0.8704, where long positions with the target at the November maximum of 0.8956 and in zone 2 will become relevant, after which growth to zone 3 (0.9157–0.9133) is expected. If during trading the quotes overcome the support area of 0.8726–0.8704, the trend will change to a downward one, and short positions with targets of 0.8506–0.8485 can be considered.

Support and resistance levels

Resistance levels: 0.8920, 0.9050.

Support levels: 0.8800, 0.8750, 0.8625.

Trading scenarios

Short positions can be opened from the level of 0.8920 with a target of 0.8800 and a stop-loss of 0.8948. Implementation period: 9-12 days.

Long positions can be opened above the level of 0.8948 with a target of 0.9050 and a stop loss of 0.8915.