USD/CHF in correction phase, eyes Non-Farm Payrolls

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USD/CHF yesterday closed in positive territory however the pair is in correction phase after hitting a crucial resistance level around 0.9075.

The pair is being traded near 0.9030 at 02:27 GMT Asia. Immediate support can be seen around 0.9022 which is a confluence of 50% fib level and 100 Daily Moving Average (DMA), a break and close below this support zone may open doors for 0.8668, 38.2% fib level and nearby 55 DMA, and then 0.8902 that is low of current wave.

USD/CHF in correction phase, eyes Non-Farm Payrolls

On Upside, resistance can be noted around 0.9075 which is 61.8% fib level ahead of 0.9142 i.e. 76% fib level and a cluster of both 200 DMA and previous wave swing high that are sitting near this area. Trend is bearish as the pair printed Lower High (LH) and Lower Low (LL) in last two waves. Bias shall remain bearish until we see a break above 0.9145 in current wave.

Relative Strength Index (RSI) and Commodity Channel Index (CCI) both are showing neutral readings that signal rallies or steep slump might be in action very soon. MACD is not showing any signs of divergence and volumes are too thin.

Yesterday a report about the US factory orders showed an upbeat reading. Tough factory orders fell in December but actual reading was above the median projection of analysts, forecast was -1.7% but actual figure remained -1.5%. Active participation of investors is not being witnessed ahead of Friday non-farm payrolls as well as jobless rate data. Moreover, Switzerland’s foreign reserves and retail sales figures are also scheduled for release on Friday. Previously, stimulus reduction by the Federal Reserve helped USD/CHF to gain some bids as greenback strengthened across the board. Analysts believe that if we see better than expected reports about labor market on Friday, then more tapering is expected this month.

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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.

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