On Wednesday, the USD fell against all major currencies across the market, as well as against the Franc as it reacted to poor data on the Consumer Price Index from the US. This index is extremely important for the GDP growth estimation, especially now before the key Fed meeting on Thursday.
On top of that, on Wednesday strong ZEW Survey – Expectations data from Switzerland supported the Franc. In September, the index grew from 5.9 to 9.7 points, which was a lot higher than forecasts.
Support and resistance
Bollinger Bands on the daily chart is directed horizontally, while the price range is narrowing slightly from below. MACD is moving downwards and giving a weak sell signal. Stochastic bounced off the oversold zone and turned upwards.
The indicators recommend waiting for a clearer trading signal.
Support levels: 0.9688 (local low), 0.9649, 0.9600, 0.9568 (1 September low), 0.9524, 0.9500, 0.9460, 0.9400, 0.9330, 0.9300, 0.9257 (24 August low).
Resistance levels: 0.9717 (local high), 0.9762 (15 September high), 0.9800, 0.9822 (9 September high).
Long positions can be opened after the price returns to the level of 0.9700 with targets at 0.9745, 0.9800 and stop-loss at 0.9660.
Short positions can be opened after the price consolidation below the level of 0.9650 with targets at 0.9610, 0.9550 and stop-loss at 0.9690.