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Dollar Weakness does not Allow the USDCHF to Recover

12/2/2022 12:08 PM

After a serious decline, the USD/CHF pair is correcting around 0.9340, but the upside potential of the franc is gradually decreasing.

Yesterday in Switzerland, the Federal Statistical Office (FSO) published data on the volume of retail sales, which for the first time since the beginning of the summer, fell by 2.5% after rising by 2.6% in September. Inflation remained at 3.0% YoY, and there was no monthly change in the indicator, although analysts predicted its increase by 0.1%. The information portal published a monthly index of business activity, which fell to 53.9 points in November from 54.9 points a month earlier, thus continuing the negative dynamics that began in April.

For the first time since August, quotes of the American currency fell below 105.000 in the USD Index and are now around 104.600. Investors are disappointed with the situation in the US labor market, where the total number of those receiving unemployment benefits after a ten-month break again exceeded 1.6M, amounting to 1.608M compared to 1.551M last week. Also, the data on manufacturing PMI, which fell to 49.0 points in November from 50.2 points a month earlier, were perceived negatively.

On the daily chart of the asset, the trading instrument has slowed down the decline and is gaining new strength to continue the trend.

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

Resistance levels: 0.9430, 0.9590. | Support levels: 0.9340, 0.9190.

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