On Wednesday, USD/CHF demonstrates slight multidirectional movements. Forex trading activity is low, as market participants prefer to wait for the release on the results of the two-day FOMC meeting. The regulator is expected to raise interest rate by 75 basis points for the fourth time in a row.
The previous day in the US the macroeconomic statistics was released, which had no significant impact on the dynamics of the currency market assets. The ISM manufacturing activity index declined from 50.9 to 50.2 points in October, while the growth forecast was 50.0 points.
The Swiss business activity index for October also decreased from 57.1 to 54.9 points, but analysts expected the decrease only to 56.0 p. The consumer confidence index dropped from (-28.0) to (-38) p. The Swiss National Bank stated the biggest loss in the history of its existence, having lost 70% of the capital for the 9 months. Weak statistics contributes to investors' capital outflow and weakening of the national currency.
USD/CHF Technical analysis
The main forex indicators for the Daily do not give unambiguous signals. Bollinger Bands remain in a flat. MACD is holding a weak buy signal, stochastic oscillator is rising and testing the 80% level for a break-up.
If the pair fixes above the parity level of 1.000, we open long positions with a take profit of 1.0100. Stop-loss is set at 0.9948.
If buyers are unable to break above 1.0000, we expect an U-turn, decrease and fixation below 0.9948. Target level for the sellers is 0.9876. Placement of stop-loss at 0.9985.
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