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Consolidation Awaiting Statistics from the USA

1/11/2023 10:35 AM

The US dollar showed mixed dynamics against the Swiss franc during the Asian session, holding near 0.9220. The USD/CHF pair has stabilized after a sharp decline last Friday and Monday; however, market participants seem to have decided to wait for new drivers to appear on the market, one of which will be the December statistics on US consumer inflation, which will be released on Thursday, January 12.

It is assumed that the new data will help the US Federal Reserve to determine the pace of interest rate hikes in early February, but now one can assume that the regulator will decide to adjust the value of only 25 basis points. Analysts predict a decline in the Consumer Price Index in December from 7.1% to 6.5%, and the CPI excluding Food and Energy may decrease from 6.0% to 5.7%. It is worth noting the report on the Swiss labor market, released on Monday, according to which the Unemployment Rate corrected from 2.0% to 1.9% in December, which coincided with analysts' forecasts.

Bollinger Bands in D1 chart demonstrate an unsteady decrease. The price range expands from below, making way for new local lows for the "bears". MACD is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic keeps a confident downward direction but is already approaching its lows, which indicates the risks of oversold US dollar in the ultra-short term.

Resistance levels: 0.9250, 0.9300, 0.9350, 0.9400. | Support levels: 0.9200, 0.9150, 0.9100, 0.9036.

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