USD/CHF: the US dollar develops upward trading dynamics
Current dynamics
During the Asian session, the USD/CHF pair has been actively growing, updating local highs since March 29. Now the instrument is testing the level of 0.9340 for a breakout, waiting for new drivers to move.
Meanwhile, the US dollar index approached the psychologically important level of 100 points on expectations of higher consumer prices, which will be published next week. The yield on 10-year Treasury bonds recovered the three-year high at 2.66% against the backdrop of hawkish rhetoric from the US regulator about raising interest rates already at the May meeting.
Demand for the US dollar remains quite high, as the market is still concerned about the prospects for the development of the global economy in connection with the crisis around Ukraine. While Western countries are stepping up unprecedented sanctions pressure against the Russian Federation, residents of almost all developed countries also feel the effect of new restrictions, recording a record increase in consumer prices. The tensest situation is developing in Europe, most dependent on Russian energy imports. The European Central Bank (ECB) position also remains ambiguous, which speaks about the need to curb price growth, but so far has not resorted to tightening its monetary policy.
Positive macroeconomic statistics supported the position of the Swiss currency yesterday. Thus, the unemployment rate in the country in March remained at the same level of 2.2%, which coincided with market expectations.
Support and resistance
On the daily chart, the Bollinger Bands are slightly growing: the price range is slightly expanding but remains quite spacious for the current level of activity in the market. The MACD indicator grows, keeping a strong buy signal (the histogram is above the signal line). Having approached its highs, Stochastic is trying to turn into a horizontal plane, signaling the risks of the US currency being overbought in the ultra-short term.
Resistance levels: 0.9352, 0.9381, 0.9430, 0.9459.
Support levels: 0.9320, 0.9300, 0.9279, 0.9250.
During the Asian session, the USD/CHF pair has been actively growing, updating local highs since March 29. Now the instrument is testing the level of 0.9340 for a breakout, waiting for new drivers to move.
Meanwhile, the US dollar index approached the psychologically important level of 100 points on expectations of higher consumer prices, which will be published next week. The yield on 10-year Treasury bonds recovered the three-year high at 2.66% against the backdrop of hawkish rhetoric from the US regulator about raising interest rates already at the May meeting.
Demand for the US dollar remains quite high, as the market is still concerned about the prospects for the development of the global economy in connection with the crisis around Ukraine. While Western countries are stepping up unprecedented sanctions pressure against the Russian Federation, residents of almost all developed countries also feel the effect of new restrictions, recording a record increase in consumer prices. The tensest situation is developing in Europe, most dependent on Russian energy imports. The European Central Bank (ECB) position also remains ambiguous, which speaks about the need to curb price growth, but so far has not resorted to tightening its monetary policy.
Positive macroeconomic statistics supported the position of the Swiss currency yesterday. Thus, the unemployment rate in the country in March remained at the same level of 2.2%, which coincided with market expectations.
Support and resistance
On the daily chart, the Bollinger Bands are slightly growing: the price range is slightly expanding but remains quite spacious for the current level of activity in the market. The MACD indicator grows, keeping a strong buy signal (the histogram is above the signal line). Having approached its highs, Stochastic is trying to turn into a horizontal plane, signaling the risks of the US currency being overbought in the ultra-short term.
Resistance levels: 0.9352, 0.9381, 0.9430, 0.9459.
Support levels: 0.9320, 0.9300, 0.9279, 0.9250.