On Thursday, an upward correction started in the USD/CHF pair and the price stepped away from the local lows amid the publication of inflation and labor market statistics in the US.
However, it is worth noting that the dynamics of Consumer Price Index does not give much cause for optimism, while labor market indicators are quite favorable. Initial Jobless Claims declined from 262K to 255K against a forecasted growth to 270K. Continuing Jobless Claims fell from 2.208 to 2.158 million.
Support and resistance
Bollinger Bands indicator on the daily chart is moving down. The price range is widening, but the price still remains at the lower MA. MACD is trying to start growing, while still keeping a sell signal. Stochastic is in the overbought zone and trying to turn up.
According to the indicators, an upward correction is possible in the short term.
Support levels: 0.9500, 0.9474 (15 October current local low), 0.9460, 0.9400.
Resistance levels: 0.9525, 0.9551 (15 October local high), 0.9575, 0.9600, 0.9621, 0.9643 (13 October local high), 0.9666.
Long positions can be opened after the breakout of the level of 0.9559 with the target at 0.9620 and stop-loss at 0.9530. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.9512 with targets at 0.9430, 0.9290 and stop-loss at 0.9550. Validity – 3-4 days.