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USDCHF Market Update

10/28/2022 1:46 PM

During the Asian session, the USD/CHF pair consolidates near the 0.9920 mark.

Yesterday, the US currency was actively growing after the publication of positive statistics on the dynamics of Q3 gross domestic product (GDP): the indicator added 2.6% after declining by 0.6% in the last quarter, which was better than forecasts, which assumed a value of 2,4%.

Moderate pressure on the position of the franc on Thursday came from the decision of the European Central Bank (ECB) to raise interest rates by 75.0 basis points, while the regulator signaled further tightening of monetary policy, focusing on inflation problems. The focus of investors on Friday will be a block of macroeconomic statistics from the US on the dynamics of personal income and household spending. Also, data on the volume of pending transactions for the sale of housing and the consumer confidence index from the University of Michigan will be released today. Out of Switzerland on Friday, the Swiss Economic Institute (KOF) October Leading Indicator Index is expected to drop from 93.8 to 93.2.

According to Benoit Reva, Director of the Federal Energy Administration, the consequences of the current economic crisis will be observed in the heating period of 2023–2024 since access to Russian gas will cease by this time, and the country needs to form the necessary energy reserves in advance. The gas importers are likely to be Germany and France.

On the daily chart, Bollinger bands are trying to turn into a downward plane: the price range is expanding, clearing the way for the "bears" to the previous local lows. The MACD indicator is falling, keeping an unstable sell signal (the histogram is below the signal line). Stochastic, having approached its lows, is trying to turn into an upward plane, signaling in favor of the development of corrective growth in the ultra-short term.

Resistance levels: 0.9914, 0.9948, 1.0000, 1.0050. | Support levels: 0.9876, 0.9840, 0.9807, 0.9762.

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