6) USDCHF

Technical Analysis (MA, RSI, STOCH, MACD, ADX)

• M30 - DOWN
• H1 - DOWN
• H4 - DOWN
• D1 - RANGE
• W1 - DOWN
• MN - DOWN

• Resistance: 0.9206, 0.9250, 0.9275
• Support: 0.9125, 0.9070, 0.9000

Yesterday the currency pair was quite active and multidirectional by the end of the day returned below the upper level of the sideways 0.9206 - 0.8940. Speaking about the phase of the market, now the classic Risk-On, the Fear-Greed indicator, now shows a value of 70.

A series of minor news on the US was released yesterday, which slightly limited the downward movement and served as a tailwind for the US dollar. The CB (Conference Board) consumer confidence index reversed its three-month downtrend and improved to 113.8 in October from 109.8 in the previous month. On top of that, US new home sales increased 14% in September to 800,000 year on year, compared with a downwardly revised 702,000 in August. This was the highest level in six months and underlined strong underlying demand.
However, the prevailing risk sentiment, along with the continuation of the recent decline in US Treasury yields, kept traders away from aggressive purchases of the dollar, which is a traditional safe-haven currency.

Switzerland did not publish anything important.

In terms of fear, more news from the Middle Kingdom and again COVID and real estate. This time around, the China Evergrande Group is once again undermining investor confidence, especially after Chinese regulators asked billionaire Hui Ka Yang to use his personal fortune to ease the worsening debt crisis in the real estate giant. Local governments across China are monitoring Evergrande's bank accounts to ensure that company funds are used to complete unfinished housing projects, rather than going to pay off creditors. The People's Bank of China continues to inject increased liquidity into the banking system. In terms of COVID, China has introduced a lockdown in the large industrial metropolis of Lanzhou. The market has not yet won back this news, but most likely we will see the reaction. It is very possible that we will see a couple of downward shots ahead against the backdrop of impulses in demand for protection.

Major market participants are now waiting for important US macro data to be released, tomorrow we are waiting for:
- US GDP (Q / Q) (Q3) primary publication
- Number of initial applications for unemployment benefits

In terms of the prospects for the movement, as we noted earlier, as long as the currency pair is below the important resistance level of 0.9400, then we will adhere to the idea that the market is sideways. Only on the breakdown of the level of 0.9400 can we say more confidently that the bulls have gained the upper hand in the currency pair. Now the currency pair is near the level of 0.9206, earlier the currency pair regularly and for a very long time hovered sideways between the levels 0.9206 - 0.8940.
The fundamental assessment speaks of an exclusively upward movement, but before the breakdown of the 0.9400 confirmation level, the currency pair is technically in a sideways trend.


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