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USDCHF, Consolidation at New Local Highs

2/6/2023 11:19 PM

The USD/CHF pair shows multidirectional dynamics, consolidating near 0.9250 and updating local highs from January 31. Traders are in no hurry to open positions, preferring to wait for new drivers of movement and analyzing a strong report on the US labor market, released last Friday, February 3.

Investors drew attention to a sharp increase in the Nonfarm Payrolls: 517.0 thousand after 260.0 thousand in December, while analysts expected only 185.0 thousand. At the same time, the Unemployment Rate decreased from 3.5% to 3.4%, with the forecast of 3.6%. In addition, the Services PMI from the Institute of Supply Management (ISM) in January rose from 49.2 points to 55.2 points with a forecast of 50.4 points, and the indicator from S&P Global rose from 46.6 points to 46.8 points, which also exceeded the neutral forecasts of analysts. Strong macroeconomic data are an additional signal for the US Federal Reserve to continue tightening monetary stimulus. Last week, the regulator raised the interest rate by 25 basis points, but warned the markets against speculation about the end of the tightening cycle of monetary policy.

Tomorrow investors will pay attention to statistics from the Swiss labor market. In particular, at 08:45 (GMT+2) January data on the Unemployment Rate will be published: it is expected that the seasonally adjusted indicator will remain at the level of 1.9%.

On the D1 chart Bollinger Bands are trying to reverse into the ascending plane. The price range expands slightly from above, freeing a path to new local highs for the "bulls". MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic keeps its upward direction but is rapidly approaching its highs, which reflects the risks of overbought American dollar in the ultra-short term.

Resistance levels: 0.9300, 0.9350, 0.9400, 0.9478. | Support levels: 0.9250, 0.9200, 0.9150, 0.9100.

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