The USD/CHF pair continues growing.
The pair is pressured by strengthening US Dollar and poor macroeconomic statistics from Switzerland. Data on the SECO Consumer Climate for the fourth quarter of the year came out substantially lower than its forecasts at -18 points, against expected -14 points. Furthermore, Real Retail Sales in September amounted to only 0.2%. Thus, inflation in Switzerland remains near zero levels that could force the Swiss NB to ease its monetary policy further.
Today, prior to the publication of very important data on the US labour market that could determine dynamics in the USD until the end of the month, volatility in the pair remains low.
Support and resistance
The pair remains at 2012 highs and is moving along an ascending channel on the weekly chart towards 1.0200 (year highs).
The price is trading above important support levels at 0.9880 (August highs), 0.9800 (September highs and ЕМА144 on the 4-hour chart), 0.9740 (ЕМА50 on the daily chart), a breakdown of which could send the pair towards 0.9630 (ЕМА144), 0.9590 (ЕМА200 on the daily chart), 0.9490 (ЕМА200 on the weekly chart) and 0.9430 (ЕМА144 on the weekly chart and lower border of the ascending channel).
On the 4-hour chart, OsMA and Stochastic turned to sales.
Support levels: 0.9880, 0.9800, 0.9740, 0.9630, 0.9590.
Resistance levels: 0.9970, 1.0000, 1.0050, 1.0100.
Short positions can be opened below the level of 0.9930 with targets at 0.9880, 0.9850 and stop-loss at 0.9960.
Long positions can be opened above the level of 0.9970 with the target at 1.0050 and stop-loss at 0.9940.