Against the background of increasing recession risks in the US economy in 2023, the USD is declining against its main competitors, acting as a catalyst for updating the December low of 0.9205 in the USD/CHF pair.
The statistics on unemployment in Switzerland also contributes to the strengthening of negative dynamics, the level of which, according to the latest data, adjusted to 1.9%, taking into account seasonal changes in December, which is lower than the forecast of 2.1% and the previous value of 2.0%. The December consumer price index in annual terms slowed from 3.0% to 2.8%, which was lower than the 2.9% predicted by analysts, and on a monthly basis, the indicator decreased by 0.2% after zero dynamics in November.
The long-term trend remains descending. Last week, the bidders tried to break the resistance level of 0.9400, but it was held, which led to the opening of new short positions with a target at 0.9205. If the level of 0.9205 is broken down, the decline is likely to continue with targets at 0.9155 and 0.9090. The RSI indicator is in the neutral zone, which implies the opening of new sales for the instrument.
The mid-term trend is also downtrend. At the moment, market participants are trying to break the target zone 0.9260–0.9229, and if successful, the next sales target will be the 0.8961–0.8932 zone. The trend boundary is in the area of 0.9548–0.9515, if it is reached by the price as part of the correction, then it will be possible to consider new sales of the instrument at favorable prices with the first target at the December minimum of 0.9205.
Resistance levels: 0.9400, 0.9550. | Support levels: 0.9205, 0.9155, 0.9089.