Current trend

Yesterday, the USD/CHF pair rose sharply, reaching the resistance level of 0.8750, above which it is trying to consolidate today amid the strengthening of the American dollar after the Republican Party representative Donald Trump’s victory in the presidential election.

The official’s election program contains significant economic and political changes, possibly causing the US Fed to abandon its “dovish” rhetoric. In anticipation of the first orders of the new president, there is significant uncertainty, which supports the dollar as a means of preserving deposits amid potential risks. However, the currency is under pressure from expectations of the US Fed interest rate adjustment today at 21:00 (GMT 2). Forecasts suggest a reduction in the indicator by 25 basis points to 4.75%, and in the accompanying statement, regulator officials may indicate the possibility of another similar reduction in December.

The October unemployment rate in Switzerland remained at 2.5%, justifying analysts’ forecasts without affecting the franc, as traders focus on the US presidential elections.

The trading instrument is moving in a long-term upward trend, having reached the resistance level of 0.8750 yesterday and trying to consolidate above it today. Then, it may grow to the resistance level of 0.8875 and 0.9020. If the area of ​​0.8750 is maintained, short positions, with the target at the support level of 0.8625 and around ​​0.8520 are relevant. The RSI indicator (14) is growing and approaching the overbought area, reflecting the likelihood of a correction.

The medium-term trend is ascending to zone 2 (0.8921–0.8892). If the quotes reverse in the support area of ​​0.8635–0.8621, it is worth opening long positions, with the target at the weekly high of 0.8773, and if the asset reaches the support area of ​​0.8500–0.8474 — long positions, with the target at 0.8773.

Support and resistance

Resistance levels: 0.8750, 0.8875, 0.9020.

Support levels: 0.8625, 0.8520, 0.8405.

Trading tips

Long positions may be opened above 0.8780, with the target at 0.8875 and stop loss 0.8745. Implementation period: 9–12 days.

Short positions may be opened below 0.8733, with the target at 0.8625 and stop loss 0.8780.