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The USDCHF is Consolidating Near the Parity Level

10/13/2022 10:59 AM

During the Asian session, the USD/CHF pair is growing slightly, developing flat dynamics in the ultra-short term and trading around 0.9985.

Investors are in no hurry to open new trading positions, waiting for the publication of key statistics on US consumer inflation for September: current forecasts suggest a moderate decrease in inflationary pressure, which, however, is unlikely to affect the hawkish rhetoric of the US Federal Reserve significantly. Nevertheless, questions about the global recession are increasingly being raised by politicians and economists at various levels. The actions of global regulators are increasingly being criticized, but central banks have no other instrument to fight inflation, so officials are forced to act more carefully, carefully assessing the risks of a recession in the global economy.

In the minutes of the US Federal Open Market Committee (FOMC) published yesterday, the agency allows monetary policy easing in the future but notes that this may be more dangerous for the economy than a sharp increase in interest rates. Also, the report reflects the strong state of the national economy: industrial production and consumer spending are growing moderately, the labor market remains stable, and the unemployment rate is prone to decline further.

On the daily chart, Bollinger bands reverse into a horizontal plane: the price range is expanding, letting the “bulls” renew local highs. The MACD indicator tries to reverse into a downward plane and form a new sell signal (the histogram tends to be below the signal line). Stochastic is declining more confidently, retreating from its highs, which reflected that the US currency might become overbought in the ultra-short term.

Resistance levels: 1.0000, 1.0050, 1.0100, 1.0167.  | Support levels: 0.9948, 0.9914, 0.9868, 0.9807.

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