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USDCHF is Consolidating Near 0.93

12/20/2022 12:00 PM

The US dollar shows multidirectional dynamics, holding near 0.9300. The day before, the USD/CHF pair showed an active decline, which was provoked by the growth of general optimistic mood in the market and an increase in demand for high-yielding assets. Now, however, the situation is gradually changing, as investors are confident that the US Federal Reserve and other regulators will be able to cope with inflation in the next few months, which will allow the global economy to return to growth. Nevertheless, there are still enough risks, and the prospects for the development of the Russian-Ukrainian military conflict are still not clear.

In turn, moderate pressure on the dollar is also exerted by not the most optimistic macroeconomic statistics from the US. Friday's data showed a drop in the S&P Global Manufacturing PMI in December from 47.7 points to 46.2 points with neutral forecasts, while the Services PMI corrected from 46.2 points to 44.4 points, while investors expected growth to 46.8 points.

This week, investors expect the release of updated data on the dynamics of the US Gross Domestic Product (GDP) for the fourth quarter. In addition, at the end of the week statistics on the Durable Goods Orders in November will be published. On Wednesday, December 21, the Swiss National Bank will release a report for the fourth quarter.

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is almost constant, remaining rather spacious for the current level of activity in the market. MACD is growing preserving a weak buy signal (located above the signal line). Stochastic shows similar dynamics; however, it is already reacting to the emergence of "bearish" sentiment at the beginning of this week.

Resistance levels: 0.9300, 0.9350, 0.9400, 0.9478. | Support levels: 0.9250, 0.9200, 0.9150, 0.9100.

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