The USD/CHF pair is testing 0.9800 for a breakout, while the dollar shows weak growth during morning trading, renewing local highs from July 15 and receiving support from investors' expectations of a further increase in interest rates by the US Federal Reserve. Analysts expect another 75 basis points correction after the "hawkish" comments of the Chair of the regulator, Jerome Powell, at the Jackson Hole symposium.
On Friday, the August report on the national labor market will be published, and if analysts' forecasts come true, this will become a solid foundation for the continuation of the "hawkish" policy of the American financial regulator. At the same time, the report presented the day before by Automatic Data Processing Inc. reflected an increase in Nonfarm Payrolls in August by 132.0 thousand after an increase of 270.0 thousand a month earlier, with the expected 288.0 thousand.
Today, the focus of investors will also be statistics on consumer inflation in Switzerland for August. The Consumer Price Index is expected to accelerate by 0.2% MoM and add 3.4% YoY. Tomorrow Switzerland is to publish data on Employment Rate for the second quarter.
Bollinger Bands on the daily chart show a steady increase. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic retains a steady uptrend, but is located in close proximity to its highs, which points to the risk of overbought dollar in the ultra-short term.
Resistance levels: 0.9807, 0.9847, 0.9900. | Support levels: 0.9762, 0.9700, 0.9650, 0.9594.