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.
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