The USD/CHF is slightly strengthening on Monday and is trading around the local lows of July 14, updated on the release of the US labor market report last Friday.
Non-farm Payrolls showed that the U.S. economy added 315,000 jobs over the month, higher than the forecast of 300,000, but lower than the previous figure of 526,000. At the same time the unemployment rate increased from 3.5% to 3.7%. The release slightly reduced the likelihood of a 75 basis point rate hike in September.
Today is Labor Day in the US, so financial markets will be closed. In Switzerland, second quarter GDP data is expected to be released. The figure is forecast to fall from 4.4% to 3.0% (y/y).
The Bollinger Band indicator on the daily formation chart is rising as well as the MACD indicator, which preserves a strong buy signal.
Oscillator stochastic is flying on the border of the overbought area (20%).
After breakdown of resistance at 0.9859, we open long positions with Take Profit at the parity level of 1.0000. We will set a stop loss at 0.9770.
In case of a rebound from 0.9859, wait for a breakdown below support at 0.9762 and then sell short towards 0.9650. Stop-loss is set at 0.9650.