USDCHF is consolidating with its higher lows and lower highs inside a symmetrical triangle pattern on the hourly time frame. Price is testing the resistance at the .9900 major psychological mark and might be due for a dip to support again.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support levels are more likely to hold than to break. In addition, USDCHF is trading above both moving averages, so these might hold as dynamic support on dips.

Stochastic is heading south to show that selling pressure is in play. The oscillator has room to head lower before reaching the oversold region to reflect exhaustion among sellers, so USDCHF might dip back down to the bottom around .9850 from here.

RSI is also starting to make its way down from the overbought region to signal that bearish momentum might pick up. If sellers are strong enough, USDCHF could break below the triangle support and sell off by the same height as the chart pattern or around 200 pips.

Similarly, a break above the triangle top could set off a rally that’s the same size as the chart pattern.

The upcoming NFP release would likely be the main catalyst for dollar price action in the coming session, as analysts are expecting another slowdown in hiring. Keep in mind, however, that the actual figure has been beating expectations for the past four months so another upside surprise might be possible.

Leading indicators have been mixed, with the ADP employment change and ISM services PMI pointing to strong jobs growth. On the other hand, the JOLTS job openings figure and ISM manufacturing PMI are hinting at weaker results.