Current trend

Against stable dynamics of the American currency, the USD/CHF pair is trading within a corrective trend at 0.8948.

At the end of last week, the Swiss National Bank (SNB) decided to continue fighting inflation to return it to a stable range below 2.0% and raised the interest rate from 1.50% to 1.75%, the highest since the 2008 crisis. According to subsequent statements, officials do not expect consumer price growth to slow below 2.0% before 2025, and until then, monetary tightening may continue. Tomorrow, the index of economic expectations from the Center for European Economic Research (ZEW) will be published, which may be –32.3 points, in line with –32.2 points earlier. Thus, there are almost no prospects for a significant increase in the franc now, and the USD/CHF pair will continue to move under the pressure of the US currency.

The US dollar is near 102.200 in the USD Index. Today, the main expectations of investors are related to the publication of the June consumer confidence index from the Conference Board, which, according to forecasts, will increase from 102.3 points to 104.0 points, and data on new home sales for May, where the indicator may decrease from 683.0K to 675.0K.

Support and resistance

On the daily chart, the trading instrument is correcting toward the support line of the global downward corridor with the boundaries of 0.9040–0.8600.

Technical indicators gave a sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO histogram forms corrective bars in the sell zone.

Resistance levels: 0.9020, 0.9150.

Support levels: 0.8895, 0.8750