Negative expectations of market participants associated with a possible recession in the US in 2023 against the backdrop of a long course of interest rate correction, leading to deterioration in conditions in the labor market and an increase in consumer spending contribute to the sales of the US currency.
In Switzerland, in turn, there is a transition from loose to moderate monetary policy, due to the latest increase in interest rates by the Swiss National Bank by 0.50% to 1.00%. Inflation in the country remains one of the lowest in Europe and is 3.00% in annual terms, while in the eurozone price growth reached 10.1%. The policy of the Swiss financial regulator and low inflation support the quotes of the national currency, which is likely to contribute to the downward movement of the USD/CHF pair in the near future.
The long-term trend in the USD/CHF pair remains downward. Last week, market participants tested the resistance level of 0.9340, but failed to break it out. This means that with further holding of the level, the price is likely to fall with the target of 0.9205, the breakdown of which will lead to the next support at 0.9155. The RSI indicator is in the neutral zone, which allows considering both long and short positions on the instrument.
The mid-term trend is downward. Last week, traders reached the target zone 3 (0.9260-0.9229), and now the immediate target for short positions has shifted to a low of 0.9216. In case of its breakdown, the movement of the asset will continue to the target zone 4 (0.9016–0.8993). The key resistance of the trend is located at the levels of 0.9563–0.9530, in case of reaching which the "bears" will have an opportunity to consider selling with the target at 0.9216.
Resistance levels: 0.9340, 0.9400, 0.9550. | Support levels: 0.9205, 0.9155, 0.9089.