USDCHF Outlook: Bullish Momentum Amid Strong Dollar and Labor Market Insights

The currency pair holds above 0.9100 on strong US dollar buying. It hit a high of 0.91362 and is currently trading around 0.91166. The intraday bias appears bullish as long as the support level at 0.9000 holds.

Labor Market Insights

Recent reports as of January 9, 2025, indicate some changes in the U.S. labor market. The ADP National Employment Report indicates that private sector jobs rose by 122,000 in December 2024, but hiring slowed compared to previous months. Annual pay growth has tapered down to 4.6%, its lowest point since July 2021. FOMC minutes indicate that members discussed inflation, mentioning that the same remains above target, meaning potential future rate adjustments may be called for at some stage. Jobless claims trends suggest a tighter labor market but with slowdown signs in job creation. Overall, these trends suggest a cooling job market as the FOMC continues to be cautious on economic growth and inflation. The interaction of these factors will be important for monetary policy in the months ahead.

Technical Analysis and Resistance Levels

The pair is trading above the 34-EMA and 55-EMA on the 4-hour chart indicating a bullish trend. The immediate resistance is at 0.9150 any break below targets is 0.9180/0.92250. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9070, any violation below will drag the pair to 0.9030/0.9000/0.8940/0.8890.

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - Neutral

Trading Strategy Recommendation

It is good to buy on dips around 0.9110 with a stop-loss at 0.9070 for a TP of 0.9200.