Current trend

The USD/CHF pair is falling to around 0.8633 after the publication of Swiss Q2 industrial production data.

The indicator, which records the change in the volume of industrial output and utilities in the country, taking into account the manufacturing and mining industries, as well as the electric power industry, demonstrated rapid growth YoY to 7.3%, exceeding analysts’ forecasts of –2.9% and the previous value of –2.0% and confirmed the high growth rates of the national economy. Against this background, the franc received support from buyers, and now the USD/CHF pair is trying to continue the rapid downward trend that began in May 2024.

After a decline in July – early August, the quotes went into correction and reached 0.8716, held by sellers last week, which led to an increase in the downward dynamics last Friday. The main “bearish” target is now the support level of 0.8565. In case of a breakdown, a downward movement will continue to ​​0.8388, and then to 0.8191. An alternative scenario assumes that the support level of 0.8565 is held by buyers, so growth to 0.8716 may follow. A breakout will significantly increase the prospects of reaching the resistance level of 0.8870.

The medium-term trend reversed upwards last week. Traders broke through the key resistance zone of 0.8669–0.8648, after which the price went into a correction, with the target at 0.8527–0.8506. After reaching it, it is worth considering new long positions with the prospect of testing the high of last week at 0.8747. If the price consolidates above it, the upward dynamics will intensify to the area of ​​0.8898–0.8875.

Support and resistance

Resistance levels: 0.8715, 0.8870.

Support levels: 0.8565, 0.8387.

Trading tips

Long positions may be opened above 0.8760, with the target at 0.8870 and stop loss 0.8715. Implementation period: 9–12 days.

Short positions may be opened below 0.8565, with the target at 0.8387 and stop loss 0.8630.