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

FXOpen

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.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Latest from Forex Analysis

The Market Focusing on Speech of Federal Reserve Head Swiss Franc Weakens after Inflation News Market Analysis: GBP/USD Struggles While USD/CAD Aims Higher USD/JPY Technical Analysis: Yen Strengthens after Comments from Japanese Officials The American Currency Resumes Its Growth

Latest articles

Indices

NASDAQ Rally Shows Tech Stocks Are Back in Focus - But for How Long?

The NASDAQ index, well known as a premier listing venue for North American technology companies across the entire spectrum from the Silicon Valley giants to recently listed newcomers, has been going from strength to strength during the beginning part of

Forex Analysis

The Market Focusing on Speech of Federal Reserve Head

Despite the abundance of fundamental data of the past trading week, the main currency pairs continue to trade in rather narrow flat corridors. Thus, the US dollar/yen currency pair is trading above 150.00, from time to time testing

Forex Analysis

Swiss Franc Weakens after Inflation News

Inflation in the country fell in February to its lowest level in nearly two-and-a-half years, data from Switzerland's Federal Statistical Office showed on Monday. Although consumer prices rose 1.2% compared to a year earlier, there is reason to believe

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.