In the Asian session on Monday, USD/CHF is slightly strengthening, testing the strength of the 0.9020 level. Market activity on Monday remains moderate, as European stock exchanges are closed due to the celebration of Catholic Easter.
At 16:00 (GMT+2), investors are waiting for the release of the March index of business activity in the US manufacturing sector.: Forecasts from ISM suggest an increase from 47.8 to 48.4, and from S&P Global unchanged at 52.5. In February, the basic indicator of personal consumption expenditures decreased from 0.5% to 0.3% on a monthly basis and from 2.9% to 2.8% on an annual basis, confirming preliminary estimates. Thus, the slowdown in inflationary pressure continues, convincing investors that the Fed will not adjust interest rates in May.
On Thursday, the market's attention is focused on Swiss inflation data for March. Forecasts suggest an adjustment of the index from 0.6% to 0.3% on a monthly basis and from 1.2% to 1.4% on an annual basis. The interest rate cut by the Swiss National Bank last month was perceived by traders as the beginning of a monetary policy easing cycle.
Global analysts suggest a gradual weakening of the Swiss franc this year: economists at Bank of America Corp. It is predicted that the franc will reach parity with the euro (1.00) by September.
USD/CHF Technical Analysis for today
![USD/CHF Technical Analysis for today](/articles_files/files/usdchf_daily (2).webp)
On the daily chart, the Bollinger bands indicator is rising moderately. The MACD indicator is trying to turn down in a positive area and form a sell signal. The stochastic is decreasing, being just below the middle of the working area.
Sales can be opened after breaking down the key level of 0.9000 with a target of 0.8935. We set the stop loss at 0.9037.
Long positions can be opened after fixing above 0.9037. The target is 0.9100. We will place the stop loss at 0.9000.