The USD/CHF pair is facing downward pressure, reaching a new multi-week low on Friday as investors await the release of the US jobs report for May.
After a recent decline from 0.9158, the pair has found strong support around the 0.8893/83 zone, which has prevented further downside in the past few trading sessions. Despite bearish daily indicators, oversold conditions and the inability to break below the support level suggest uncertainty in the near-term direction.
The key event for today is the US labor data release, with economists predicting an addition of 185K new jobs in May, unchanged unemployment rate of 3.9%, and a slight increase in average earnings. However, softer than expected data could lead to a dovish Fed stance, putting pressure on the dollar and potentially breaking through key support levels.
On the other hand, positive job figures would support the greenback and offer initial stability to the USD/CHF pair. Resistance levels are seen at 0.8937, 0.9000, 0.9049, and 0.9070, while support levels lie at 0.8883, 0.8838, 0.8778, and 0.8729.
Overall, the USD/CHF pair’s direction will likely be influenced by the US jobs report, with potential for further downside if data is weaker than expected, or a bounce back if figures are positive.