The US Dollar (USD) inched lower against the Swiss Franc (CHF) on Monday, dragging the price of USDCHF to less than 1.0180 following the release of some key economic news. The technical bias however remains extremely bullish because of a higher high and higher low in the recent downside wave.
Technical Analysis
As of this writing, the pair is being traded around 1.0158. A support may be found around 1.0153, the intraday low of Friday ahead of 1.0019, the swing low of the giant bullish engulfing candle which was emerged after the ECB press conference and then 1.0000, a major psychological milestone. The technical bias shall remain bullish as long as the 0.9549 support area is intact.
On the upside, a hurdle may be noted near 1.0200-1.0206, the confluence of psychological number as well as horizontal resistance area as demonstrated in the given above daily chart. A break and daily closing above the 1.0206 resistance shall incite renewed buying interest, validating a move towards the 1.0300, next major resistance in short to medium term.
Swiss Unemployment
The rate of unemployment in Switzerland remained unchanged last month, official data showed on Friday. 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 outlook, buying the pair on dips appears to be a good strategy in short to medium term.
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