Current trend

Last week, the USD/CHF pair broke above the May high at the resistance level of 0.9140 and changed the long-term trend to an uptrend amid a record 11-week rally in the American dollar, caused by statements by US Federal Reserve officials that interest rates will be kept at peak levels longer than expected. The franc is weakening after the Swiss National Bank left borrowing costs at 1.75% on September 21, although analysts had forecast a 25 basis point increase.

The USD/CHF pair reached 0.9220 and overcame the resistance level of 0.9140 but has now begun a downward correction, which may continue to the support level of 0.8990, from where it is worth opening long positions with the target at last week’s high of 0.9220. If 0.8990 is broken n, the movement will continue to 0.8865. The RSI indicator (21) has left the overbought zone, signaling the beginning of a correction.

The medium-term trend is upward: last week, zone 2 (0.9087–0.9060) was passed, and the next target was zone 3 (0.9335–0.9310). Now, the price is correcting down to the area of key trend support 0.8980–0.8956, after reaching which long positions with the first target at last week’s high 0.9220 are relevant.

Support and resistance

Resistance levels: 0.9330, 0.9420.

Support levels: 0.8990, 0.8865, 0.8770.

Trading tips

Long positions may be opened from 0.8990 with the target at 0.9220 and stop loss around 0.8917. Implementation time: 9–12 days.

Short positions may be opened below 0.8917 with the target at 0.8770 and stop loss around 0.8990.