The USDCHF pair, trading at 0.87720, continues to stay within a narrow range of 0.8770 to 0.8780 as investors await the release of Swiss inflation data.

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• USD/CHF remains confined in a tight range between 0.8770 and 0.8780 ahead of the Swiss inflation data.

The pair currently trades last at 0.87720.

The previous day high was 0.8778 while the previous day low was 0.8712. The daily 38.2% Fib levels comes at 0.8753, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8737, expected to provide support.

The USD/CHF pair consolidates in a narrow range above 0.8770 in the early Asian session after retreating from the key barrier around 0.8800. The solid US ADP Employment Change lifts the Greenback. The US Dollar Index (DXY), a measure of the value of USD against six other major currencies, surges to its highest level since July 7 at 102.80 in response to the news.

That said, Automatic Data Processing Inc. (ADP) revealed on Wednesday that the number of employed people in the US private sector rose by 324K, above estimates of 189K and lower than the revised reading of 455,000 in June. This figure is above the 12-month average. Investors speculate on a more aggressive Federal Reserve (Fed) stance, which benefits the US Dollar and acts as a tailwind for the USD/CHF pair.

On the other hand, markets turned cautious after Fitch downgraded the United States government’s credit rating from AAA to AA+. The leading rating company cited an expected fiscal deterioration over the next three years and a high general government debt burden as the primary reasons for this drastic action.

US Treasury Secretary Janet Yellen said late Wednesday that Treasury securities remain the world’s most secure and liquid asset and that the US economy is fundamentally robust, per Reuters. Additionally, White House (WH) Economic Adviser Jared Bernstein expressed confidence in the US government and Congress to avoid default, and the US Treasury debt remains the safest in the world. However, this headline fuels concern about the US debt ceiling crisis and might cap the upside in the Greenback. This, in turn, might benefit the Swiss Franc, a traditional safe-haven asset.

Looking ahead, market participants await the Swiss Consumer Price Index (CPI) YoY for July. Also, investors will take cues from more US employment data. The US weekly Jobless Claims and Unit Labor Costs are due later in the day. The highlight of the week is the US Nonfarm Payrolls on Friday. The economy is expected to have created 180,000 jobs in July.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8773 at the time of writing. Pair opened at 0.8753 and is trading with a change of 0.23 % .

The pair is trading above its 20 Daily moving average @ 0.8713, below its 50 Daily moving average @ 0.8892 , below its 100 Daily moving average @ 0.896 and below its 200 Daily moving average @ 0.9173

The previous day high was 0.8778 while the previous day low was 0.8712. The daily 38.2% Fib levels comes at 0.8753, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8737, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8718, 0.8682, 0.8652
• Pivot resistance is noted at 0.8783, 0.8813, 0.8848

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