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USDCHF is Consolidating Near Local Highs

3/3/2023 11:00 AM

During the Asian session, the USD/CHF pair is correcting around 0.9395 after the upward dynamics yesterday, which led to the renewal of local highs of December 6.

Moderate support for the US currency was provided by positive macroeconomic statistics: initial jobless claims for the week of February 24 decreased from 192.0K to 190.0K, while analysts expected its further growth to 195.0K, and continuing claims for the week of February 17 fell from 1.660M to 1.655M, which also was better than market forecasts of an increase to 1.665M. Before this, the dollar remained under pressure amid the publication of ambiguous data on business activity in the manufacturing sector from the Institute of Supply Management (ISM): in February, the indicator increased from 47.4 points to 47.7 points, which, however, fell short of the forecasts of 48.0 points. Also, the value has been below the psychological level of 50.0 points for a long time.

On Friday, investors will focus on the block of macroeconomic statistics from the US on business activity in the services sector from ISM: according to analysts' expectations, the indicator will drop from 55.2 points to 54.5 points. Also during the day, the US Federal Reserve's report on monetary policy will be published, which will be commented on by representatives of the regulator.

On the daily chart, Bollinger Bands are steadily growing: the price range is narrowing, reflecting the emergence of multidirectional trading dynamics in the short term. The MACD indicator is trying to reverse into a downward plane but retains its buy signal (the histogram is above the signal line). Stochastic is showing similar dynamics, trying to retreat from its highs, indicating that the US dollar may become overbought in the ultra-short term.

Resistance levels: 0.9439, 0.9478, 0.9550, 0.9600. | Support levels: 0.9400, 0.9350, 0.9300, 0.9250.

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