Current trend

The USD/CHF pair is showing ambiguous dynamics during the Asian session, holding close to 0.8965.

Market activity remains subdued as traders await the outcome of the US Fed monetary policy meeting, which will take place tomorrow at 20:00 (GMT 2). In addition, the regulator will publish renewed charts of expected interest rate changes soon for the first time in three months, which will help reduce uncertainty, and experts are about equally likely to assess scenarios with one and two interest rate cuts this year.

The US currency is moderately supported by strong data on the labor market: in May, the number of new jobs created outside the agricultural sector increased from 165.0K to 272.0K, ahead of forecasts of 185.0K, and the average hourly earnings indicator increased from 4.0% to 4.1% compared to expectations of 3.9% YoY and from 0.2% to 0.4% MoM, above the expected 0.3%.

On Thursday, the Swiss National Bank (SNB) report on financial stability is due, as well as statistics on the dynamics of producer prices and imports: according to preliminary estimates, in May, production inflation will slow down from 0.6% to 0.5%.

Support and resistance

On the daily chart, Bollinger bands are confidently declining: the price range is narrowing at the top, remaining quite spacious for the current level of activity in the market. The MACD indicator is growing, maintaining a buy signal (the histogram is above the signal line). Stochastic is approaching highs, indicating that the American dollar may become overbought in the ultra-short term.

Resistance levels: 0.9000, 0.9037, 0.9071, 0.9100.

Support levels: 0.8964, 0.8935, 0.8900, 0.8865.

Trading tips

Short positions may be opened after breaking through the 0.8935 level downwards, with the target at 0.8865. Stop loss — 0.8964. Implementation period: 2–3 days.

Long positions may be opened after breaking through the 0.9000 level upwards, with the target at 0.9071. Stop loss — 0.8964.