Current dynamics

After rising to the level of 0.8957, the USD/CHF pair quotes adjusted to the area of 0.8800 and are likely to continue the downward movement this week supported by macroeconomic reports.

In November, the index of leading economic indicators of the Swiss Economic Institute (KOF) stood at 101.8 points, exceeding the forecast of 100.1 points and the previous value of 99.7 points. Gross domestic product (GDP) in the third quarter was 0.4% on a quarterly basis, as expected by experts, and reached 2.0% on an annual basis against expectations of 1.8%, which allowed the USD/CHF pair to head towards the support area of 0.8625.

The long-term trend is bearish, but a correction developed from October to November, during which the price tested the resistance level of 0.8920 and fell to the mark of 0.8800, which it has not yet managed to overcome. If it consolidates below it, it is likely to reach the area of 0.8625 and 0.8520. If the quotes continue to consolidate above the resistance level of 0.8920, long positions with the target of 0.9050 will become relevant.

The medium-term trend is bullish: the asset tested zone 2 twice (0.8921–0.8892) and entered a correction, in which this week the price can reach the trend support area of 0.8726–0.8704, where long positions will become relevant with the target at the November high of 0.8956 and in zone 2, after which growth to zone 3 (0.9157–0.9133) is expected. If quotes break through the support area of 0.8726–0.8704 during trading, the trend will change to bearish, and short positions can be considered with targets at 0.8506–0.8485.

Support and resistance levels

Resistance levels: 0.8920, 0.9050.

Support levels: 0.8800, 0.8750, 0.8625.

Business scenarios

Short positions can be opened from the level of 0.8920 with the target at 0.8800 and the stop-loss at 0.8948. Implementation time: 9–12 days.

Long positions can be opened above the level of 0.8948 with the target of 0.9050, and the stop-loss at 0.8915.