Since the beginning of the week, the USD/CHF pair has been strengthening, but a correction has started today amid expectations of highly important macroeconomic indicators. The US releases GDP, GDP Price Index and Personal Consumption Expenditures statistics for the third quarter.
The next meeting of the Swiss National Bank is due on 10 December. The Regulator noted that the national currency is still overvalued, thus, affecting the export-oriented manufacturing sector of the economy.
Support and resistance
The USD/CHF pair has returned to the level of 0.9900. Despite of the correction, an upward movement may resume within the channel on the weekly chart with the upper border close to the levels of 1.0030, 1.0100.
OsMA and Stochastic indicators on the daily, weekly and monthly charts recommend long positions. On the 4-hour chart, the indicators are giving sell signals.
The key support levels are 0.9800 (September highs), 0.9700 (ЕМА200 and ЕМА144 on the 4-hour chart), the breakdown of which may allow the pair to decline to 0.9610 (ЕМА144), 0.9570 (ЕМА200 on the daily chart) and further to 0.9490 (ЕМА200 on the weekly chart) and 0.9430 (ЕМА144 on the weekly chart and the lower border of the downward channel on the daily chart).
Support levels: 0.9970, 1.0000, 1.0030, 1.0100.
Resistance levels: 0.9970, 1.0000, 1.0030, 1.0100.
Short positions can be opened after the breakdown of the level of 0.9860 with the target at 0.9770 and stop-loss at 0.9890.
Pending buy orders can be placed at the level of 0.9870 with the target at 0.9950 and stop-loss at 0.9840.