On Tuesday, the Swiss franc was strengthening against the US dollar, but lost all its gains and declined back to the opening level at the end of the daily session. Nevertheless, the Swiss currency was supported by strong macroeconomic statistics, released in Switzerland.
In September, Exports grew above the forecasts from 14285 to 16950 million Swiss francs. Imports also increased significantly from 11423 to 13903 million Swiss francs. The country posted a CHF 3047 million trade surplus in September, up from a CHF 2862 million surplus.
Support and resistance
Bollinger Band indicator on the daily chart continues declining, while the price range is narrowing down actively. MACD is growing and keeping a buy signal. Stochastic is approaching the border of the overbought zone.
According to the indicators, existing long positions should be kept in the short term. At the same time, it is recommended to wait for clearer trading signals before opening new positions.
Support levels: 0.9551, 0.9525, 0.9500, 0.9474 (15 October low), 0.9460, 0.9400.
Resistance levels: 0.9576 (19 October high), 0.9600, 0.9621, 0.9644 (13 October high), 0.9666, 0.9685, 0.9717.
The price is likely to turn down, thus, short positions can be opened at the level of 0.9515 with the target at 0.9465 and stop-loss at 0.9550. Validity – 2-3 days.
As an alternative, pending buy orders can be placed at the level of 0.9660 with the target at 0.9840 and stop-loss at 0.9600. Validity – 3-4 days.