USD/CHF shows a slight decrease, far from retreating from the 0.8970 mark. Traders are waiting for new drivers of movement. The corrective momentum of the beginning of the week is weakening, as the US dollar did not receive support from official statements and the publication of economic data.
Yesterday, the head of the US Federal Reserve, Jerome Powell, spoke in the Senate, noting that the US labor market is showing signs of significant cooling. The June report, published at the end of last week, turned out to be worse than analysts' forecasts. The revision of the number of new jobs in May from 272 thousand to 218 thousand had a significant impact. The unemployment rate increased from 4.0% to 4.1% in June. Powell will speak in the House of Representatives today, but it is unlikely that his speech will be much different from yesterday's. US inflation data for June will be released tomorrow at 14:30 (GMT+2). The annual consumer price index is expected to slow from 3.3% to 3.1%, and the monthly indicator will increase from 0.0% to 0.1%.
The Swiss franc is under pressure due to the stabilization of the political situation after the parliamentary elections in France. Recall that Frank reacted by increasing the probability of a victory for the right, but the left-wing coalition won in the second round, and Marine Le Pen's party took third place. Now the markets are concerned about the possible difficulties of forming a new French government.
USD/CHF Technical analysis for today
On the daily chart, the Bollinger Band indicator is trying to level out. The MACD indicator is declining, maintaining a weak sell signal. Stochastic, moving away from the "20" mark, turns up.
Short positions can be opened after a confident breakdown and price consolidation below the level of 0.8964. The sellers' immediate target is 0.8900. We place the stop loss at 0.9000.
A rebound from the 0.8964 level followed by an upward breakout of 0.8989 becomes a signal to enter purchases with a target of 0.9037. We will set the stop loss to 0.8964.