Solid News

USDCHF High Prospects for Continuation of the Downtrend

12/27/2022 12:41 PM

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.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024