USDCHF is still moving sideways on its 4-hour time frame and looks ready to make its way up to the next ceiling at the .8535 range resistance. Technical indicators are pointing to a potential bounce.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that resistance is more likely to hold than to break, potentially sending the pair back to the range support at .8420 next.

Then again, the gap between the indicators is narrowing to reflect weakening bearish pressure and a potential upward crossover that could attract more buying interest. The pair is also trading above both moving averages, so these could hold as dynamic support on dips.

Still, stochastic is already reflecting overbought conditions or exhaustion among buyers, so turning lower would mean a pickup in selling pressure. RSI seems ready to move south without even reaching the overbought area, suggesting that sellers are eager to take over.

USDCHF is finding support from relatively upbeat leading US jobs indicators, as the latest ADP non-farm employment change figure beat estimates. The report reflected a 143K increase in hiring versus the projected 126K gain and the earlier 103K increase, suggesting that the NFP report tomorrow could also surprise to the upside.

Still, the upcoming Challenger job cuts and ISM services PMI due today could shape expectations for the official jobs report. Another batch of strong results could translate to more dollar gains, possibly even leading USDCHF to bust through its range resistance. If that’s the case, the pair could go for a rally that’s the same height as the rectangle pattern, especially if the NFP does surprise to the upside.

The Swiss CPI is also up for release today and could add bearish pressure on the franc, especially since analysts are expecting a 0.1% dip in price levels.