The US Dollar (USD) extended upside movement against the Swiss Franc (CHF) on Wednesday, increasing the price of USD/CHF to more than 1.050 following the release of some key economic news. The technical bias remains bullish because of a higher high and higher low in the recent wave.
Technical Analysis
As of this writing, the pair is being traded near 1.0171. A support may be seen around 1.0051, the swing low of the giant pin bar which was emerged on 30th December. A break and daily closing below the 1.0051 support shall incite renewed selling pressure, validating a move towards 1.0018-1.0000, the confluence of horizontal support area as well as psychological number.
On the upside, the pair is expected to face a hurdle around 1.0206, the horizontal resistance area ahead of 1.0335, the swing high of the last major upside rally and then 1.0500, the psychological number. The technical bias shall remain bullish as long as the 1.0000 support area is intact.
Switzerland Unemployment
The rate of unemployment in Switzerland remained unchanged last month, official data showed on Tuesday. In a report, State Secretariat for Economic Affairs said that Switzerland’s unemployment rate remained unchanged at a seasonally adjusted 3.3%, from 3.3% in the preceding month. Analysts had expected Switzerland’s unemployment rate to remain unchanged at 3.3% last month.
Trade Idea
Considering the overall technical and fundamental, selling the pair around current levels appears to be a good strategy in short to medium term. Alternatively, buying USD/CHF near 1.0350 can also be a good option if you want to follow breakout strategy.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
