Current trend

During the Asian session, the USD/CHF pair returned to growth and is renewing the highs of July 10. The asset is developing the “bullish” momentum formed yesterday, although the news background from the US remained neutral.

The US currency was moderately supported by macroeconomic data on the labor market: initial jobless claims for the week of August 18 decreased from 240.0K to 230.0K with neutral forecasts of 240.0K, and the continuous claims for the week of August 11 decreased from 1.711M to 1.702M, ahead of forecasts of 1.708M. Also, in July, the durable goods orders changed by –5.2% after rising by 4.4% last month, although analysts expected only –4.0%, and the value excluding the defense sector changed by –5.4% from 5.9% in June.

On Friday, investors focus on the speech of US Federal Reserve Chairman Jerome Powell at the annual symposium in Jackson Hole. Markets expect to hear additional signals that the regulator will raise interest rates by 25 basis points before the end of the year. In 2024, experts expect a resumption of the course towards a gradual reduction in the cost of borrowing. In Switzerland, Q2 employment data will be published: forecasts suggest a moderate increase in the value from 5.389M to 5.428M after falling from 5.398M to 5.389M earlier.

Support and resistance

On the daily chart, Bollinger bands are steadily growing: the price range is expanding but not as fast as the “bullish” sentiment develops. The MACD indicator is rising, keeping a strong buy signal (the histogram is above the signal line). Stochastic reversed upwards but is rapidly approaching its high, indicating that the US may become overbought in the ultra-short term.

Resistance levels: 0.8875, 0.8918, 0.8960, 0.9000.

Support levels: 0.8850, 0.8826, 0.8800, 0.8756.

Trading tips

Long positions may be opened after a breakout of 0.8875 with the target at 0.8960. Stop loss – 0.8815. Implementation period: 1–2 days.

Short positions may be opened after a rebound from 0.8875 and a breakdown of 0.8850 with the target at 0.8800. Stop loss – 0.8875.