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USDCHF Market Update

11/21/2022 12:27 PM

Against the background of the stabilization of the US currency, the USD/CHF pair is trading within a corrective trend around 0.9559. After a serious strengthening, the franc took the expected break and slightly lost its value.

Regarding macroeconomic statistics, last week was quite positive: in the third quarter, the number of employees in Switzerland increased by 0.8% compared to the same period a year earlier, and the number of hours worked rose by 2.0%. Industrial production rose 5.2% from a 5.0% rise in the previous quarter, secondary sector production increased 3.4% YoY, and sector turnover increased 7.6%, largely driven by prices, which have been going on since the beginning of the year. Against positive macroeconomic data, the Swiss currency will remain stable, and the direction of the USD/CHF quotes will largely depend on the dynamics of the US dollar.

Today, the US currency rose to 107.300 in the USD Index, and this is the first serious strengthening of the dollar in the last two weeks, the main factor of which was the lack of pressure from the fundamental background, which may return to the market tomorrow, when officials from the regional Federal Reserve Banks (FRB) speak out regarding the monetary policy implemented by the US Federal Reserve: analysts are confident that the regulator will slow down the rate of an interest rate hike to 50.0 basis points from 75.0 basis points earlier from the next meeting.

On the daily chart of the asset, the price is correcting upwards, approaching 0.9600.

Technical indicators maintain a weakening sell signal: fast EMAs on the Alligator indicator are well below the signal line, and the AO oscillator histogram forms upward bars in the sell zone.

Resistance levels: 0.9620, 0.9840. | Support levels: 0.9480, 0.9356.

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