Switzerland’s export-oriented economy is under pressure amid a slowdown in the eurozone and China. Moreover, a strong national currency makes Swiss export less competitive.
Swiss and retail sales growth have fallen to almost zero and industrial production has declined. At the same time, the Fed is expected to raise its interest rates at December meeting. These factors will keep the Swiss franc from growing in the USD/CHF pair.
Support and resistance
On the , the price is moving in an between 1.0240 and 0.9800. Though the pair is overbought and is at its year highs, it still has a potential for growth.
On the daily, weekly and monthly charts, OsMA and indicators recommend long positions. Nevertheless, on the 4-hour chart, is starting giving a sell signal. Thus, a correction is possible to the support levels of 1.0120 (EMA50 and the lower border of an on the 4-hour chart), 1. 0000 (the middle of the channel on the and EMA144 on the 4-hour chart).
Support levels: 1.0120, 1. 0000 , 0.9880, 0.9800.
Resistance levels: 1.0240, 1.0300.
Short positions can be opened from the level of 1.0170 with targets at 1.0120, 1.0090, 1.0010 and stop-loss at 1.0210.
Long positions can be opened from the level of 1.0220 with targets at 1.0240, 1.0300 and stop-loss at 1.0190.