Current trend

The USD/CHF pair is trading in a correction trend at 0.8582, preparing for further growth against the strengthening of the American dollar.

Switzerland’s macroeconomic statistics confirm the stability of the franc. The September producer price index changed by –0.1% MoM and from –1.2% to –1.3% YoY, approaching the zero level, which would mean complete price stability and support for the country’s economy.

The American dollar is trading at 102.60 in the USDX, the highest since mid-August. The producer price index has begun to decline only recently, reaching 2.6% in mid-summer. The September indicator was 0.0% MoM, allowing it to decrease from 1.9% to 1.8% YoY, which was received by investors positively. On the other hand, the October Michigan consumer expectations index fell from 74.4 points to 72.9 points, and the current conditions index from 63.3 points to 62.7 points.

Support and resistance

On the daily chart, the trading instrument is correcting above the resistance line of the downward channel 0.8550–0.8400.

Technical indicators reinforce the buy signal: fast EMAs on the Alligator indicator crossed the signal line upwards, and the AO histogram is forming ascending bars in the buy zone.

Resistance levels: 0.8610, 0.8730.

Support levels: 0.8540, 0.8400.

Trading tips

Long positions may be opened after the price rises and consolidates above 0.8610, with the target at 0.8730. Stop loss — 0.8540. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 0.8540, with the target at 0.8400. Stop loss is 0.8600.