Uncle Sam is about to release the ISM manufacturing PMI today!

Will this leading jobs indicator take USD/CHF above or below this area of interest?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Sterling advances on rumors of PM Truss rethinking tax rate changes

Crude oil gapped higher on talks of OPEC production cut

Japanese FM Suzuki says rapid yen FX moves are undesirable

Chinese markets closed for Golden Week holidays

Japanese Tankan manufacturing index dipped from 9 to 8 vs. consensus at 11

Japanese Tankan non-manufacturing index up from 13 to 14

Australia’s MI inflation gauge rebounded by 0.5% after previous 0.5% dip

Swiss consumer prices fell by 0.2% vs. projected 0.1% uptick

German banks closed for the holiday

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. ISM manufacturing PMI at 2:00 pm GMT
BOE MPC member Mann’s testimony at 6:00 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: USD/CHF

USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

This pair is hanging out at a short-term area of interest, still deciding where to head next.

Will it break above the support-turned-resistance zone and aim to test parity?

Or will it set its sights back down and attempt to break below the rising trend line?

Technical indicators seem to be pointing to another wave lower, as the moving averages are gearing up for a bearish crossover. See how that gap between the 100 SMA and 200 SMA is closing?

At the same time, Stochastic is already on the move down, so USD/CHF might follow suit now that sellers have the upper hand.

Whether or not the trend line breaks could depend on the outcome of the U.S. ISM manufacturing PMI report. Analysts are expecting to see a dip from 52.8 to 52.5 to reflect a slower pace of industry expansion.

What would likely draw the attention of USD traders is the jobs component, as this would provide some clues for Friday’s NFP release.

A sharp decline in the employment index might be indicative of an NFP miss, so keep an eye out for a dollar selloff in case that happens!