USD/CHF loses momentum and the pair recedes towards 0.8845 after US data

• USD/CHF inches lower to 0.8845 after gaining in the previous two sessions.
• US Consumer Confidence Index improved and labor opening showed encouraging figures.
• Market anticipations for a Fed rate cut in September remain high, challenging the USD.

In Tuesday's trading session, the USD/CHF pair declined by 0.20%, edging lower at around 0.8845. This decline came despite improving US consumer sentiment and strong job openings data, which led to a generally strong performance for the Greenback on Tuesday. Markets are now on high alert awaiting the outcome of the Federal Reserve (Fed) meeting scheduled for Wednesday.

The Conference Board's Consumer Confidence Index rose in July to 100.30, up from a downwardly revised 97.8 in June, showing a marginal improvement in US consumer sentiment. The US Bureau of Labor Statistics (BLS) also reported in its Job Openings and Labor Turnover Survey (JOLTS) that there were 8.184M job openings on the last business day of June slightly down from the revised 8.23 M in May, but still surpassing the market expectation of 8.03M. 

Looking ahead, while a Fed rate hold is widely anticipated on Wednesday due to the robust US economic performance, investors expect that the bank will leave the door open for a September cut. In line with that markets bet on 80% odds of a rate cut but incoming labor market data this week, will guide those expectations.

USD/CHF technical analysis

The technical outlook for USD/CHF has turned from neutral to bearish after getting rejected by the 200-day Simple Moving Average (SMA) during Tuesday's session. The pair continues trading below the 20, 100, and 200-day SMAs, which suggest ongoing selling pressure. In addition, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) remain in the red, pointing to steady selling pressure.

The support levels remain at 0.8800, 0.8750, and 0.8730, while the resistance levels are at 0.8850, 0.8870, and 0.89000.

USD/CHF daily chart