Current trend
The USD/CHF pair kept declining amid weakening US Dollar that remains under pressure prior to the approaching Fed meeting. According to the majority of predictions, the Fed is going to hike interest rates at its December meeting that is due next week. At the same time, there is a possibility that effect of that might be the opposite, and instead of strengthening, the USD will decline as it is heavily overbought right now.
Today attention needs to be paid to the SNB Interest Rate Decision. The rate is expected to remain unchanged at -0.75%.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. However, the price remains just over the lower MA of the indicator. MACD keeps falling. Stochastic is in the oversold zone and trying to turn up indicating a possibility of an upward correction.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.9818 (local low), 0.9800, 0.9774 (26 October low), 0.9717, 0.9685, 0.9644, 0.9600.
Resistance levels: 0.9873 (local high), 0.9900, 0.9930, 0.9956, 1.0000 (psychologically important level), 1.0032 (4 December high), 1.0075.
Trading tips
Long positions can be opened after the breakout of the level of 0.9860 (with the appropriate indicators signals) with targets at 0.9930, 0.9960 and stop-loss at 0.9820. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.9820 with the target at 0.9700 and stop-loss at 0.9860. Validity – 2-3 days.
