At the beginning of the week, the USD/CHF pair is growing to new local highs. After a weekly rally, the USD keeps strengthening against the CHF despite weak New Homes Sales Change statistics, released on Monday in the US. In September, the indicator fell by 11.5% against a 5.2% growth in the previous month, while just a 0.4% decline was expected.
The US dollar gains support from expectations of the Fed meeting, due on Wednesday, and China's monetary easing. This weekend, the People's Bank of China lowered its interest rates for the sixth time this year.
Support and resistance
indicator on the is moving upwards. The price range is widening, but the price does not fit within its borders. is growing and keeping a buy signal. is in the overbought zone and turning horizontally.
and indicate a possibility of a downward correction. recommends long positions.
Support levels: 0.9800, 0.9774, 0.9439, 0.9717, 0.9685, 0.9666, 0.9644, 0.9621, 0.9600.
Resistance levels: 0.9822, 0.9842 (25 September high), 0.9862, 0.9900 (11 August high), 0.9930.
Long positions can be opened after the breakout of the level of 0.9842 (with appropriate indicators signals) with targets at 0.9900, 0.9920 and stop-loss at 0.9800. Validity - 1-2 days.
Short positions can be opened after the breakdown of the levels of 0.9822, 0.9800 with targets at 0.9740, 9.9700 and stop-loss at 0.9850. Validity - 2-3 days.