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US Labor Market Report did not Support the USDCHF

3/13/2023 11:32 AM

During the Asian session, the USD/CHF pair shows ambiguous trading dynamics, consolidating near 0.9170 and local lows of February 14.

The focus of the market is the report on the US labor market for February, published on Friday, which reflected weaker growth in the number of new jobs in February by 311.0K after an increase of 504.0K earlier but exceeded forecasts of 205.0K. Investors drew attention to the increase in the unemployment rate from 3.4% to 3.6% and the slowdown in the growth rate of the average hourly wage in February from 0.3% to 0.2% MoM and from 4.4% to 4.6% YoY with a forecast of 4.7%.

The ongoing tension in the US labor market may hinder the plans of the US Federal Reserve to combat consumer inflation: last week, the head of the department, Jerome Powell, made “hawkish” statements in the US Parliament, noting the need to continue the policy of tightening monetary conditions. According to the official, interest rates will remain at high levels for a long time. It is expected that next week the indicator will be corrected by 25.0 basis points, although an increase of 50.0 basis points at once is also not ruled out by analysts.

On the daily chart, Bollinger bands are reversing downwards: the price range is expanding but not as fast as the "bearish" activity develops. The MACD indicator is going down, keeping a fairly strong sell signal (the histogram is below the signal line). Stochastic keeps a confident downward direction but is near the lows, indicating that the American dollar may become oversold soon.

Resistance levels: 0.9200, 0.9258, 0.9300, 0.9350. | Support levels: 0.9150, 0.9100, 0.9073, 0.9036.

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