6) USDCHF

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

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

• Resistance: 0.9206, 0.9250, 0.9275
• Support: 0.9070, 0.9000, 0.8930

The currency pair was trading yesterday with the downward direction, having passed 80 pips during the trading day. And it reached the September low. The US dollar fell against most of its major competitors yesterday, but its bullish potential remains unchanged. Market participants were cautiously optimistic, pushing global stocks higher. This led the market into a phase of extreme greed, which served as a tailwind for the currency pair. According to the total for yesterday, the value of the Fear-Greed indicator at the maximum for this year is 77.

However, the demand for risky assets is likely to decrease, as there are a number of fears in the market, and the US stock market is 'threatened' by uncertainty about the additional stimulus proposed by US President Joe Biden, despite the recent optimism of the Democratic leader. Also, do not forget that there are still many fears in the market that may continue to support the demand for safe-haven currency. Here is the FOMC meeting, and as it has become customary for China. Only now, a potential food crisis has been added to the problems with COVID. The Chinese government has appealed to the public, urging them to stock up on food in case new lockdowns are introduced.
On the other hand, the Chinese government has begun to urge restaurants and catering companies to use food rationally.
The 2025 plan follows President Xi Jinping's call to reduce food waste and improve the country's food security. Efforts are being made as Chinese agricultural purchases continue to climb year over year to record levels. China is also facing sharp increases in the prices of some foodstuffs, which could be a more serious inflation problem.

The US yesterday released mixed data on IHS Markit Manufacturing PMI for October 2021 and was revised down to 58.4 from 59.2 and 60.7 projections a month earlier. And the ISM figure fell to 60.8 in October from 61.1 in the previous month, but slightly above market expectations of 60.5.

It's worth noting that cautious sentiment ahead of a key US central bank meeting appears to be challenging the currency pair lately. On Monday, the US PMI fell, indicating less urgency on the part of the Fed to cut monthly bond purchases. In addition, as a reference to the recent need to soften the Fed's actions were the reduction of inflationary expectations in the US and the comments of US Treasury Secretary Janet Yellen, who said that she was not confident that the US economy could 'overheat.' Former Fed Chairwoman D. Yellen hinted that the US-China Phase I trade deal and mutual tariff easing could reduce inflation. The same underlines the optimism about a long-awaited trade agreement between the world's two leading economies.

Switzerland did not publish anything significant yesterday.

Then follow the news:
Tomorrow:
- Change in the number of employed in the non-agricultural sector from ADP (Oct)
- FOMC Statement
- Decision on the Fed's interest rate
- FOMC press conference
Thursday:
- Number of applications for unemployment benefits
Friday:
- Change in the number of people employed in the US nonfarm sector NFP (Oct)
- US Unemployment Rate (Oct)

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. Now the currency pair is inside the sideways range between the levels 0.9206 - 0.8940, where it previously hung for months.
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.
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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