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USDCHF Develops Flat Trading Dynamics

12/8/2022 11:01 AM

During the Asian session, the USD/CHF pair is growing slightly, testing 0.9420 for a breakout and recovering from yesterday's hesitant trading.

Yesterday, the US dollar came under pressure ahead of the US Federal Reserve meeting, which may decide to slow down the pace of monetary tightening: current forecasts suggest an adjustment of the interest rate by only 50.0 basis points against the backdrop of declining inflation from peak values and growing risks of a recession in the American economy.

Macroeconomic statistics released on Tuesday from the US and Switzerland did not significantly affect the dynamics of the asset: the mortgage lending index published by the Mortgage Lending Association (MBA) decreased by 1.9% in the week of December 2 after falling by 0.9% on the previous period, with Q3 non-agricultural labor productivity up 0.8% QoQ from a 0.3% rise in the previous month. However, analysts had expected a 0.5% increase. Swiss statistics supported the franc position with a fall in the unemployment rate in November from 2.1% to 2.0%, which was better than the neutral forecasts.

On the daily chart, Bollinger bands moderately decline: the price range narrows, reflecting the emergence of ambiguous trading dynamics in the short term. MACD grows, keeping a strong buy signal (the histogram is above the signal line). Stochastic shows similar dynamics. However, it is rapidly approaching its highs, which indicates that the US dollar may become overbought in the ultra-short term.

Resistance levels: 0.9478, 0.9550, 0.9600, 0.9650. | Support levels: 0.9400, 0.9350, 0.9300, 0.9250.

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