USD/CHF Rebounds After Swiss Unemployment News
FXOpen
The US Dollar (USD) extended upside movement against the Swiss Franc (CHF) on Friday, increasing the price of USDCHF to more than 0.9725 following the release of some key economic news. The technical bias remains bullish because of a Higher High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 0.9731. A support can be seen around 0.9650, the intraday low of yesterday as well psychological number ahead of 0.9537, the swing low of the last major downside move and then 0.9500, the psychological level.
On the upside, the pair is likely to face a hurdle near 0.9737, the intraday high of yesterday ahead of 0.9884, the swing high of the last major upside rally and then 1.0000, a major psychological level. The technical bias will remain bullish as long as the 0.9884 support area is intact.
Swiss Unemployment Rate
Swiss seasonally-adjusted unemployment increased to a three-month high of 3.4% for August from 3.3% the previous month and compared with expectations that the rate would be unchanged. This was the first increase since May and slightly higher than the 3.3% recorded for August 2015, which will maintain some concerns over cost-cutting within the economy, especially as GDP growth appeared to hold firm.
The unadjusted rate also increased to 3.2% from 3.1%, again slightly higher than the consensus forecast with an increase of 5,875 in the number of unemployed. The number of job seekers increased over the month and recorded an annual increase of 4.8% with youth unemployment edging higher over the month.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). 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.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Pound at Key Levels: Markets Assess Impact of Political Uncertainty in the UK
The British pound remains under pressure following increased political uncertainty in the United Kingdom triggered by the Prime Minister’s resignation. Investors are assessing potential shifts in the political and economic policy outlook after the head of government stepped down,
Silver: Fed Tightens Its Tone as Price Returns to the Volume Profile Zone
Silver came under pressure following the Federal Reserve’s June meeting, at which policymakers kept interest rates unchanged at 3.50–3.75%. Nine of the 18 committee members still see the possibility of a rate increase this year, reinforcing
Ethereum: Market Assesses the Strength of the Corrective Recovery
Following a period of heightened volatility in early June, investor attention in Ethereum has once again shifted towards institutional demand and the development of the spot ETF market in the United States. The funds launched last year continue to serve