On Monday, dynamics in the USD/CHF pair was mixed. At the same time, the instrument managed to fall below the level of 0.9800, reached at the end of October the last time.
The US Dollar came under pressure from favorable EU data. In October, Industrial Production grew by 0.6%, twice above the forecast. In the previous month, the indicator came in at -0.3%.
Moreover, market participant are waiting for the Fed meeting, due on 16 December. Analysts suggest a hike in US interest rates, but still various scenarios are possible. Therefore, due to uncertainty, the volatility in the USD is likely to be high until the Regulator releases its decision.
Support and resistance
Bollinger Bands indicator on the daily chart is directed down, while the price range is widening. MACD is declining and keeping a sell signal. Stochastic is in the oversold zone and trying to turn up that suggests a possibility of a correctional growth in the short term.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.9818, 0.9800, 0.9755 (26 October low), 0.9717, 0.9685, 0.9644.
Resistance levels: 0.9873, 0.9900 (near 10 December high), 0.9930, 0.9956, 1.0000 (strong psychological barrier), 1.0032, 1.0075, 1.0100.
Long positions can be opened when the price turns up and overcomes the level of 0.9850 (with appropriate indicators signals) with targets at 0.9900, 09930 and stop-loss at 0.9810. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 0.9800 with the target at 0.9700 and stop-loss at 0.9840. Validity – 1-3 days.