Current trend

This month, the USD/CHF pair is trading in the 0.8833–0.8770 resistance area.

The quotes are preparing to continue the downtrend against the expected pause in the tightening cycle of the US Federal Reserve’s monetary policy at a meeting on September 20. Negative dynamics are developing against yesterday’s macroeconomic data: for example, sales in the secondary housing market in July decreased by 2.2% compared to a decrease of 3.3% earlier, amounting to 4.07M, below the forecast of 4.15M and the previous value in 4.16M

Support for the Swiss franc comes from a projected increase in interest rates by the Swiss National Bank (SNB) at its meeting on September 21: according to a survey of economists, the cost of borrowing will increase by 25 basis points.

Thus, if the price holds the resistance area of 0.8833–0.8770, the long-term downtrend will continue with the target at 0.8570, after which the quotes will go to the support level of 0.8400. If the zone 0.8833–0.8770 is overcome upwards, a correction to 0.9000 is expected.

The medium-term trend is directed downwards, and the instrument is near the trend line around 0.8824–0.8800. While it is being held, it is worth opening short positions with the target around zone 3 (0.8590–0.8566), and if it is overcome upwards, long positions with the target in zone 2 (0.9087–0.9060) are relevant.

Support and resistance

Resistance levels: 0.8770, 0.8833, 0.9003, 0.9110.

Support levels: 0.8570, 0.8400.

Trading tips

Short positions may be opened from 0.8833 with the target at 0.8570 and stop loss around 0.8890. Implementation period: 9–12 days.

Long positions may be opened above 0.8890 with the target at 0.9000 and stop loss around 0.8840.