Current trend

The USD/CHF pair is trading near the support level of 0.8878, correcting against the long-term uptrend against negative US macroeconomic statistics.

Thus, in May, the producer price index fell by 0.2% MoM, worse than the forecast of 0.1% and the previous value of 0.5%, and the core indicator was 0.0% compared to expectations of 0.3% and 0.5% earlier. Initial jobless claims increased by 242.0K, although experts expected 225.0K. Nevertheless, the decline in the asset may be offset by the reaction of investors to data from Switzerland, where the producer price index in May corrected from 0.6% to –0.3%, while analysts expected growth of 0.5%.

The long-term trend is upward. Within the correction, the trading instrument reached the support level of 0.8880 in early June, from which long positions, with the target at the resistance level of 0.9005 became relevant, and then — 0.9150. In case of a breakdown of the support level of 0.8880, short positions with the target at 0.8715 may be opened.

The medium-term trend is downward. In early June, the price broke the target zone of 0.8979–0.8955, and the next target for sales was zone 2 (0.8746–0.8724). Short positions are relevant from the key trend resistance area of ​​0.9145–0.9121, with the target at 0.8990 and then — at the June low of 0.8885. In case of consolidation above 0.9145, long positions with the target at 0.9399–0.9374 are relevant.

Support and resistance

Resistance levels: 0.9005, 0.9150.

Support levels: 0.8880, 0.8715.

Trading tips

Long positions may be opened from 0.8880, with the target at 0.9005 and stop loss 0.8840. Implementation period: 9–12 days.

Short positions may be opened below 0.8840, with the target at 0.8715 and stop loss 0.8900.