Current trend

The franc is losing ground in the USD/CHF pair, trading around 0.8932.

Thus, today's report on the producer price index in the three leading sectors of the Swiss economy (industry, recycling and processing of raw materials) in August showed another decrease of 0.2% after -0.1% in July. Thus, in annual terms, the indicator reached -0.8%, which leaves it in the negative zone for the third month in a row and does not contribute to the growth of the national currency.  

The USD continues to trade at the levels of the beginning of the week around the 104.500 mark in the USD Index and almost did not react to yesterday's publication of inflation data in the USA. Thus, the consumer price index rose by 0.6% in August, which led to an increase in the annual rate to 3.7% from 3.2% earlier, and this is the second month of upward dynamics after 13 months of continuous decline. The base index, which US Fed officials use to determine the course of monetary policy, adjusted to 4.3% from 4.7% earlier, thereby strengthening investors' confidence that the interest rate will be maintained at the next meeting of the regulator on September 19-20.        

Support and resistance

On the daily chart, the price is corrected and held above the resistance line of the global descending corridor with the boundaries of 0.8830–0.8530.

Technical indicators have been deployed for a long time and hold a stable buy signal: fast EMAs on the alligator indicator are rising, moving away from the signal line, and the AO histogram, staying in the buy zone, forms new correction bars.

Support levels: 0.8830, 0.8660.

Resistance levels: 0.8990, 0.9150.

Trading tips

If the asset continues local growth and the price consolidates above the local resistance level of 0.8990, long positions will be relevant with a target at 0.9150. Stop-loss – 0.8930. Implementation time: 7 days and more.

If the asset reverses and continues to decline and the price consolidates below the local support level of 0.8830, short positions can be opened with a target at 0.8660. Stop-loss – 0.8900.