Current trend

The USD/CHF pair shows mixed trading dynamics, remaining close to 0.9050 and the local highs of June 13, updated the day before. The instrument is preparing to end the week with quite active growth, the main impetus of which came on Thursday, when the meeting of the Swiss National Bank (SNB) took place.

Contrary to forecasts, the regulator kept the interest rate at 1.75%, while most analysts expected it to increase to 2.00%. The Bank began raising borrowing costs from negative levels in June 2022, and officials say the steps taken have had the desired effect on inflation, which stood at 1.6% year-on-year in August, below its target of 2.0%. In turn, the Chairman of the SNB, Thomas Jordan, said that the fight against price pressure is not over yet, and officials are closely monitoring the situation, so at the next meeting of the regulator, which will take place on December 14, further tightening of policy is possible.

Meanwhile, macroeconomic statistics from the United States published the day before did not have a noticeable impact on the dynamics of the instrument. Initial Jobless Claims for the week ended September 15 decreased from 221.0 thousand to 201.0 thousand, while forecasts assumed 225.0 thousand, and Continuing Jobless Claims for the week ended September 8 went down from 1.683 million to 1.662 million with forecast at 1.695 million. In turn, the Philadelphia Fed Manufacturing Survey fell sharply in September from 12.0 points to -13.5 points, while investors expected -0.7 points, and Existing Home Sales in August lost 0.7% after -2.2% in July.

Support and resistance

Bollinger Bands on the daily chart show a steady increase. The price range is expanding but it fails to conform to the surge of "bullish" sentiments at the moment. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic is trying to reverse downwards, retreating from its highs that signal the risks of the dollar being overbought in the ultra-short term.

Resistance levels: 0.9050, 0.9077, 0.9100, 0.9150.

Support levels: 0.9025, 0.9000, 0.8976, 0.8950.

Trading tips

Short positions may be opened after a breakdown of 0.9025 with the target at 0.8976. Stop-loss — 0.9050. Implementation time: 2-3 days.

The return of the "bullish" trend with the breakout of 0.9077 may become a signal for new purchases with the target of 0.9150. Stop-loss — 0.9025.