#USDCHF @ 0.91405 is oscillating in a narrow range below 0.9150 as volatility squeezes ahead of US NFP data. (Pivot Orderbook analysis)

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• USD/CHF is oscillating in a narrow range below 0.9150 as volatility squeezes ahead of US NFP data.
• The demand for US government bonds is accelerating as the street is considering continuation price index softening.
• SNB Jordan has confirmed further interest rate hikes amid rising inflationary pressures.

The pair currently trades last at 0.91405.

The previous day high was 0.914 while the previous day low was 0.9059. The daily 38.2% Fib levels comes at 0.9109, expected to provide support. Similarly, the daily 61.8% fib level is at 0.909, expected to provide support.

The USD/CHF pair is displaying a lackluster action below 0.9150 in the early European session after a gradual upside move. The Swiss franc asset is struggling to extend gains as investors are avoiding making significant positions ahead of the release of the United States Nonfarm Payrolls (NFP) data.

After testing Thursday’s high around 101.55, the US Dollar Index (DXY) is facing fragile barriers in extending its upside journey. S&P500 futures are failing to ease losses recorded in the Asian session, portraying a risk-off market mood. The demand for US government bonds is accelerating as the street is considering a continuation of the slowdown in the price index. This has led to a drop in the 10-year US Treasury yields below 3.38%.

Friday’s price action banks upon the release of the US NFP data. Analysts at TD Securities expect a 220K increase in payroll and a modest increase in the Unemployment Rate to 3.6%.

The economic catalyst that will be keenly watched by the market participants will be the labor cost index data. As per the consensus, Average Hourly Earnings data is seen at 4.9% vs. the prior release of 4.6% on an annual basis. While monthly data is seen steady at 0.3%. Considering the fact that labor demand is exceeding the supply, higher negotiation power in favor of job seekers could dent the Consumer Price Index (CPI) declining trend. Households will be with higher purchasing power, which could trigger retail demand again.

On the Swiss franc front, Swiss National Bank (SNB) Chairman Thomas J. Jordan has confirmed further interest rate hikes as price pressures are beyond the tolerance power of the central bank.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9143 at the time of writing. Pair opened at 0.9135 and is trading with a change of 0.09 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9213, 50 SMA 0.9292, 100 SMA @ 0.9552 and 200 SMA @ 0.9622.

The previous day high was 0.914 while the previous day low was 0.9059. The daily 38.2% Fib levels comes at 0.9109, expected to provide support. Similarly, the daily 61.8% fib level is at 0.909, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9083, 0.9031, 0.9003
• Pivot resistance is noted at 0.9163, 0.9191, 0.9243

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