Current trend

During the Asian session, the USD/CHF pair is moving within a correction trend at 0.8520. The Swiss currency is stable, strengthening while the pressure on the quotes was exerted by the dynamics of the dollar, which fell to the year’s low.

A strong franc is not beneficial for the Swiss National Bank, so the regulator is actively trying to influence the rate. Thus, analysts at Bank of America Securities learned of at least two currency interventions carried out since the beginning of summer. The last operation aimed at weakening the national currency took place on August 7 and was successful since the USD/CHF pair fell to the year’s lows, which means that several more similar steps may be taken soon. The most logical level for intervention in the market situation seems to be 0.8360.

The US currency continues to show extremely unstable dynamics, trading at 101.2 points in USDX, having strengthened slightly amid expectations of the speech by US Fed Chairman Jerome Powell at the annual Economic Symposium in Jackson Hole. In the meantime, investors are focusing on macroeconomic statistics. For the first time since February of this year, sales in the secondary housing market have grown, amounting to 3.95M instead of 3.90M last month. Of course, the indicators have not yet managed to recover to the highs of this year around 4.10M but the change in trend is a positive signal for the market. In turn, the number of initial applications for unemployment benefits reached 232.0K, which was in line with forecasts but was higher than the previous figure of 228.0K, and the total number of citizens receiving assistance from the state was recorded at 1.863K from 1.859K previously, which confirms the cooling of the sector.

Support and resistance

On the daily chart, the price is correcting and is approaching the support line of the downwards channel 0.8680–0.8360 again.

Technical indicators maintain a stable sell signal: fast EMA on the Alligator indicator are moving further and further away from the signal line, and the AO oscillator histogram is in the sell zone, forming correction bars there.

Support levels: 0.8490, 0.8360.

Resistance levels: 0.8550, 0.8670.

Trading tips

Short positions may be opened after the price consolidates below the support level of 0.8490, with the target at 0.8360. Stop loss — 0.8560. Implementation period: 7 days or more.

Long positions may be opened after the price consolidates above the resistance level of 0.8550, with the target at 0.8670. Stop loss — 0.8500.