Solid News

During the Asian session, the USD/CHF pair is growing slightly, remaining around local highs since July 14, renewed at the end of last week after the release of the August report on the US labor market.

Non-farm payrolls added 315.0K after rising 526.0K last month, but the data pointed to a slowdown in average hourly wages and showed an increase in the unemployment rate from 3.5% to 3.7%, which reduced the likelihood of an interest rate hike by the US Federal Reserve by 75.0 basis points at the September meeting, but it is still premature to draw unambiguous conclusions.

US markets are closed for Labor Day on Monday, so key data is not expected until tomorrow when S&P and ISM August business statistics are released. In Switzerland, Q2 data on the dynamics of gross domestic product (GDP) will be published on Monday: the figure may decrease from 4.4% to 3% YoY and fall to zero MoM after rising by 0.5% in the first quarter.

On the daily chart, Bollinger Bands are actively growing: the price range is expanding slightly from above but not as fast as the “bullish” sentiment develops. The MACD indicator is growing, keeping a poor buy signal (the histogram is above the signal line). Stochastic approached its highs and reversed into a horizontal plane, indicating that the US dollar may become overbought in the ultra-short term.

Resistance levels: 0.9859, 0.9930, 1.0000, 1.0050. | Support levels: 0.9807, 0.9762, 0.9700, 0.9650.