Current trend

The USD/CHF pair shows a slight decline, consolidating near 0.8970 and awaiting new movement drivers. The initial corrective impetus that formed at the beginning of this week is gradually weakening as the US dollar has not received support from the rhetoric of officials and macroeconomic publications.

The day before, the Chair of the US Federal Reserve, Jerome Powell, made a speech in the US Senate, noting that the national labor market is showing signs of significant cooling, judging by the June report, which appeared at the end of last week and turned out to be significantly worse than analysts’ expectations. A particularly strong impact on the situation was had by the revision of Nonfarm Payrolls in May, from the previous 272.0 thousand to 218.0 thousand. In turn, the Unemployment Rate in June increased from 4.0% to 4.1%. Today, the Chair of the regulator will speak in the House of Representatives, but this is unlikely to bring anything new to the market. Tomorrow at 14:30 (GMT 2) June inflation data will be published in the US: forecasts suggest that the Consumer Price Index in annual terms will slow down from 3.3% to 3.1%, and in monthly terms it will increase from 0.0% to 0.1%.

In turn, the franc is being put under some pressure by the stabilization of the political situation in France after the recent parliamentary elections. The Swiss currency was one of the first one to respond with growth to the likelihood of a right-wing victory, but in the second round of voting the left-wing coalition came out ahead, while Marine Le Pen’s party took only third place. Now the markets are somewhat concerned about the prospects for the formation of a government in France.

Support and resistance

On the D1 chart Bollinger Bands are trying to reverse horizontally. The price range is slightly narrowed, being spacious enough for the current activity level in the market. MACD is declining keeping a weak sell signal (located below the signal line) The indicator line is also trying to consolidate below the zero level. Stochastic, having moved away from the level of "20", reverses into an ascending plane, signaling in favor of the development of positive dynamics in the near future.

Resistance levels: 0.8989, 0.9000, 0.9037, 0.9071.

Support levels: 0.8964, 0.8935, 0.8900, 0.8865.

Trading tips

Short positions may be opened after a breakdown of 0.8964 with the target at 0.8900. Stop-loss — 0.9000. Implementation time: 2-3 days.

A rebound from 0.8964 as from support followed by a breakout of 0.8989 may become a signal for opening new long positions with the target at 0.9037. Stop-loss — 0.8964.