Last week, the franc was actively adding in value against the background of the Swiss National Bank's decision to raise the interest rate by 50 basis points to 1.50% and its readiness to continue tightening monetary policy in the event of a further increase in inflation, which in February amounted to 3.4%. As a result, the quotes of the USD/CHF pair began a downward movement from the resistance level of 0.9300 with a target at 0.9089.
Additional pressure on the instrument was exerted by the decision of the US Fed to increase the cost of borrowing not by 50 basis points, but by 25 basis points. The regulator's concerns about the banking sector and a possible slowdown in the national economy weaken the US currency and contribute to the sales of the instrument. Officials of the department explained the next increase in the indicator by the fight against inflation, which still remains significantly above the target level of 2.0%, while there is a possibility of an additional increase in the value in the near future.
The long-term trend in the pair remains downward. The nearest target for sales is the 0.9089 level, in case of a breakdown of which, the next target will be the 0.9030 mark. If the 0.9030 level is broken down, the 0.8945 mark will be the next target. The trend boundary is around 0.9420, and the nearest resistance level is at 0.9300. If the price corrects to it, it will be possible to consider the next sales of the instrument.
The mid-term trend is upward. In mid–March, the price corrected to the key support area of 0.9129-0.9099, which is still held by the "bulls", contributing to mid-term asset purchases. Further movement to the March maximum of 0.9433 will be a catalyst for strengthening positions up to 0.9725–0.9691.
Resistance levels: 0.9300, 0.9420, 0.9520, 0.9620. | Support levels: 0.9090, 0.9030, 0.8945.