USD/CHF Steadies at 0.8000 Ahead of U.S. Jobs Data.
USD/CHF hovers cautiously around the 0.8000 mark as the week begins, with traders bracing for a packed schedule of key U.S. economic data
FUNDAMENTAL OVERVIEW:
The USD/CHF pair trades cautiously near the 0.8000 mark in Monday’s Asian session, with the Swiss franc struggling to gain traction as traders remain wary ahead of key U.S. labor market data due this week.
At the same time, the U.S. Dollar Index (DXY) hovers near its monthly low around 97.60, reflecting broader pressure on the Greenback. Market focus is firmly on upcoming U.S. jobs data, particularly after July’s report revised May and June Nonfarm Payrolls sharply lower, fueling speculation of a potential Federal Reserve rate cut in September. The CME FedWatch tool now places the odds of a September cut at 87.6%.
Adding to dollar weakness, a U.S. appeals court ruled on Friday that former President Donald Trump’s use of emergency powers for tariff measures was “illegal,” raising concerns about U.S. policy credibility.
Meanwhile, in Swiss, investors are eyeing Thursday’s Consumer Price Index (CPI) release for August, with expectations of flat month-on-month growth. Such an outcome could heighten speculation that the Swiss National Bank (SNB) may consider deeper moves into negative interest rate territory.
USD/CHF TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CHF is trading within a down channel.
USD/CHF is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 0.8026
Immediate support level: 0.7985
HOW TO TRADE USD/CHF
After a sharp decline, USD/CHF paused its move and entered a consolidation phase, finding support that triggered a rebound to the upside. The pair later showed strength by breaking above resistance, but momentum has since faded, with price now hovering near a critical support zone. A break below this level could open the door for further downside.
