Current trend

After the maximum decline in recent weeks, recorded yesterday, during the Asian session, the USD/CHF pair shows ambiguous trading dynamics, holding near 0.8780.

Investors are looking forward to US Federal Reserve Chairman Jerome Powell’s speech at the annual symposium in Jackson Hole: the “hawks” hope to hear hints of monetary tightening before the end of the year, although there is no doubt that in September, the regulator will keep interest rates unchanged. As for macroeconomic indicators, durable goods orders, manufacturing PMI, and service PMI from S&P Global for August are worth traders’ attention.

Swiss Q2 employment data will be published towards the end of the week: the previous value fell from 5.389M to 5.389M, while analysts expected a moderate increase to 5.433M. Some pressure on the position of the national currency is exerted by foreign trade indicators: July exports volume decreased from 24.917B Swiss francs to 20.713B Swiss francs, and imports – from 20.093B Swiss francs to 17.584B Swiss francs, as a result of which the trade surplus corrected from 4.790B Swiss francs to 3.129B Swiss francs, worse than forecasts of 4.3B Swiss francs.

Support and resistance

On the daily chart, Bollinger bands are moving flat: the price range is changing slightly, limiting the further development of the uptrend in the nearest time intervals, the MACD indicator is reversing downwards, trying to consolidate below the zero line and form a new sell signal, and Stochastic is actively retreating from the high of “80.”

Resistance levels: 0.8800, 0.8826, 0.8850, 0.8875.

Support levels: 0.8756, 0.8700, 0.8650, 0.8600.

Trading tips

Short positions may be opened after a breakdown of 0.8756 with the target at 0.8700. Stop loss – 0.8790. Implementation period: 1–2 days.

Long positions may be opened after a rebound from 0.8756 and a breakout of 0.8800 with the target at 0.8850. Stop loss – 0.8770.