Since the beginning of the week, the pair is recovering its losses of last Friday when the USD fell amid disappointing data on the US labour market.
At the same time, on Monday poor data on the Markit Services and ISM Non-Manufacturing PMI’s, and the Labor Market Conditions Index came out from the US that was worse than forecasts.
On Tuesday, September data on the Consumer Price Index is due in Switzerland. Economists expect an acceleration of inflation, which could support the Swiss Franc. In addition, Unemployment Rate data is due on Thursday.
Support and resistance
The Middle Ma of Bollinger Bands on the daily chart is turning upwards, while the price range is narrowing. MACD is trying to turn up and giving a weak buy signal. Stochastic is growing and approaching the overbought zone.
The indicators recommend purchases in the short-term.
Support levels: 0.9739, 0.9717, 0.9684, 0.9666 (24 September low), 0.9643 (2 October low), 0.9600, 0.9568, 0.9525 (18 September low), 0.9500.
Resistance levels: 0.9774 (local high), 0.9800, 0.9822 (9 September high), 0.9842 (25 September high), 0.9862, 0.9900.
Short positions can be opened after the price consolidation above the level of 0.9745 with targets at 0.9700, 0.9680 and stop-loss at 0.9760.
Long positions can be opened after the breakout of the level of 0.9760 with targets at 0.9800, 0.9825 and stop-loss at 0.9745.