After it grew in the beginning of the week, later the USD/CHF pair showed a decline as a result of the number of macroeconomic publications.
SVME Purchasing Managers’ Index for August in Switzerland grew from 48.7 to 52.2 points, which was a lot higher forecasted 49.7 points. Unemployment in the eurozone also showed a positive figure as in July it fell by 0.2% to 10.9%.
At the same time, poor data on the ISM Manufacturing PMI came out in the US. The index for August fell from 52.7 to 51.1 points, worse than forecasted 52.6 points.
Support and resistance
Bollinger Bands on the daily chart is moving down, while the price range is widening. MACD is trying to start growing and giving a very weak buy signal. Stochastic is in the overbought zone but is about to leave it. The indicator points out to a possibility of the downward correction in the short-term.
The indicators recommend waiting for a clearer trading signal.
Support levels: 0.9600 (local low), 0.9568 (beginning of the week low), 0.9524, 0.9500, 0.9460, 0.9400, 0.9330, 0.9300, 0.9257 (24 August low).
Resistance levels: 0.9649, 0.9688 (31 August high), 0.9717, 0.9769, 0.9800, 0.9820 (17 August highs), 0.9862, 0.9900 (11 August high).
Long positions can be opened after the breakout and consolidation above the level of 0.9688 with the target at 0.9800 and stop-loss at 0.9600.
Short positions can be opened after the breakdown of the levels of 0.9600, 0.9568 with targets at 0.9500, 0.9400 and stop-loss at 0.9650, 0.9680.