Current trend

Amid the positive dynamics of the American dollar and the stabilization of the franc, the USD/CHF pair is trading in a correction trend at 0.8890.

The positions of the Swiss currency, which were not very strong at the beginning of the month, remain neutral due to minimal changes in macroeconomic statistics. The leading sectors of the economy reached average values ​​and consolidated at them. Thus, the June producer and import prices index remained at 107.1 points, with the largest decrease recorded in the category of oil products and an increase in food products, offsetting fluctuations in the consumer price index, which changed by –1.9% YoY.

The American dollar is trading at 104.00 in USDX. Investors reacted negatively to the data from the labor market. Initial jobless claims increased from 223.0K to 243K, and the total claims from 1.847M to 1.867M. However, after the statements of the US Republican presidential candidate Donald Trump, the currency began to grow. He promised to reduce interest rates and energy prices, significantly increasing the volume of oil production.

Support and resistance

On the daily chart, the trading instrument is correcting, preparing to test the support line of the downward channel with boundaries of 0.8980–0.8720.

Technical indicators are holding the sell signal: fast EMA on the Alligator indicator are moving away from the signal line, and the AO histogram is forming correction bars in the sell zone.

Resistance levels: 0.8934, 0.9080.

Support levels: 0.8834, 0.8700.

Trading tips

Short positions may be opened after the price declines and consolidates below 0.8834, with the target at 0.8700. Stop loss is 0.8950. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 0.8934, with the target at 0.9080. Stop loss is around 0.8880.