Current trend

The USD/CHF pair continues to strengthen around 0.8855.

Yesterday, macroeconomic data were published that supported the US dollar: the price index of personal consumption expenditures in January amounted to 2.4% YoY and 0.4% MoM, justifying analysts' forecasts. In turn, the base price index reached 2.8% YoY and 0.4% MoM, which also coincided with expectations. Thus, the main inflation indicator, which the US Federal Reserve focuses on, remains above 2.0%, confirming a high probability of keeping the interest rate unchanged at the next meeting.

The USD/CHF pair is trading in a long-term uptrend. The nearest growth target is the resistance level of 0.8896, in case of a breakout of which the next target will open up in the area of 0.9103. Strong support is at 0.8792, which the price has been testing for 11 days, as a result of which the level was held and an upward momentum began.

The RSI (21) indicator is approaching the overbought zone, but does not enter it: therefore, both new purchases and sales can be considered.

The mid-term trend is also upward. In mid-February, the price broke through the target zone of 0.8769–0.8746, and the next growth target is target zone 2 (0.9002–0.8979). The key trend support is shifting to the levels of 0.8658–0.8636 and, if the quotes adjust to this area, one may consider new purchases with the first target at the maximum of February 14, 0.8879. If this level is broken out, then the next target for purchases will be target zone 2.

Support and resistance

Resistance levels: 0.8898, 0.9103.

Support levels: 0.8792, 0.8716.

Trading tips

Long positions can be opened above the 0.8930 mark with the target of 0.9103 and stop-loss of 0.8870. Implementation period: 9–12 days.

Short positions can be opened below the level of 0.8730 with the target of 0.8565 and stop-loss of 0.8790.