On Monday, the US Dollar fell against the Franc.
Demand for the USD noticeably lowered in the last few days, despite that the markets are still expecting an increase in interest rates in the US in the near future. Investors, however, prefer waiting for new commentaries by the Fed officials. On Monday, Fed’s William Dudley gave his speech where he stated that the rate increase is even possible on the October meeting, but the likeliest date remains December.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range is widening. The indicator has formed a sell signal. MACD is falling and giving a sell signal as well. Stochastic is in the middle of its range and moving downwards.
The indicators recommend short positions.
Support levels: 0.9717 (local low), 0.9688, 0.9666 (24 September low), 0.9639, 0.9600, 0.9568, 0.9524 (18 September low), 0.9500.
Resistance level: 0.9762 (local high), 0.9800, 0.9822 (9 and 25 September highs), 0.9862, 0.9900 (11 August high).
Pending sell orders can be placed below the level of 0.9666 with the target at 0.9600 and stop-loss at 0.9683. Validity – 2-3 days.
Long positions can be opened above the level of 0.9760 with the target at 0.9820 and stop-loss at 0.9740. Validity – 1-2 days.