Current trend

Weak macroeconomic reporting hinders the strengthening of the franc's position and the change of the current trend in the USD/CHF pair, which is currently trading at 0.8741.

Thus, according to the latest data from the State Secretariat for Economic Affairs of Switzerland (SECO), the unemployment rate in July remained at 1.9%, as it was a month earlier, but the number of citizens registered in employment centers increased by 2,502K to 87,601K, while the number of unemployed decreased by 3,873K people compared to with the same period a year earlier. In turn, the Federal Statistical Office (FSO) presented a report on the cost of residential real estate: in Q2, the index added 1.2%, amounting to 115.9 points, and annual house price inflation was fixed at 2.4%, which is still above the target range of 2.0%.

Meanwhile, the US currency continues to rise smoothly and is trading around 102.2 points in the USD Index today. The situation in the US economy remains tense, and with the growth of public debt, the solvency of the country's residents is actively falling. Thus, according to the latest report of the Federal Reserve Bank (FRB) of New York, the total amount of Americans' credit card debt exceeded 1.0T dollars for the first time in history, adding 45.0B dollars in Q2 and amounting to 1.03T dollars. The main reason for the negative dynamics is still high inflation, the July report on which will be published tomorrow: analysts expect consumer prices to adjust to 3.3% in annual terms from 3.0% earlier.  

Support and resistance

On the daily chart, the price is correcting in the direction of the resistance line of the global descending corridor with the boundaries of 0.8850–0.8400.

Technical indicators hold the sell signal, which narrows against the background of a local correction. Thus, the fast EMAs on the alligator indicator continue to approach the signal one, and the histogram of the AO oscillator, being in the sales zone, forms new ascending bars.

Support levels: 0.8700, 0.8550.

Resistance levels: 0.8820, 0.9000.

Trading tips

Short positions can be opened after the price consolidates below the local support level of 0.8700 with a target at 0.8550. Stop-loss – 0.8800. Implementation time: 7 days and more.

Long positions may be opened after the reversal and local growth of the asset, as well as the price consolidation above the local resistance level of 0.8820 with a target at 0.9000. Stop-loss – 0.8720.