Current trend

The positive dynamics of the USD/CHF pair slowed below 0.9142 against negative American macroeconomic statistics.

In March, preliminary building permit volume was –4.3% MoM, well below the –0.7% forecast. In physical terms, the figure reached 1.458M, less than the expected 1.514M. The volume of construction of new houses adjusted by –14.7% compared to estimates of –2.4% to 1.321M against the preliminary estimate of 1.480M.

This week, there are no key data expected from Switzerland to affect the asset movement, and yesterday’s poor publications will not allow it to continue growing soon.

The long-term trend remains upward: the price has reached the resistance level of 0.9142 and has been holding it for six days. If buyers cannot overcome it, a downward correction will begin, with the target at the support level of 0.9007. From this mark, long positions with the target at 0.9142 will become relevant, after the breakdown of which an increase to 0.9230 is expected. The RSI indicator (21) is near the overbought zone, temporarily limiting the positive dynamics.

The medium-term trend is upward: the quotes have overcome zone 3 (0.9002–0.8979) and headed towards zone 4 (0.9249–0.9224). At the moment, the trading instrument is developing a downward correction. It continues, it may reach the key support area of 0.8910–0.8887, where long positions with the first target at the current week’s high of 0.9148 are relevant.

Support and resistance

Resistance levels: 0.9142, 0.9230, 0.9329.

Support levels: 0.9007, 0.8878.

Trading tips

Long positions may be opened from 0.9007, with the target at 0.9142 and stop loss 0.8968. Implementation time: 9–12 days.

Short positions may be opened below 0.8968, with the target at 0.8878 and stop loss 0.9007.