The US Dollar (USD) inched slightly higher against the Swiss Franc (CHF) on Monday, increasing the price of USDCHF to more than 0.9790 following the release of some key economic news. The technical bias remains bearish because of a Lower High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 0.9791. A hurdle can be seen around 0.9831, the horizontal resistance ahead of 0.9886, the swing high of the latest major upside rally, and then 1.0000, a huge psychological level as demonstrated in the given below daily chart.
On the downside, the pair is expected to find a support around 0.9767, the intraday low of Friday ahead of 0.9650, the horizontal support area and then 0.9596-0.9600, the confluence of the horizontal support as well as the psychological number. The technical bias will remain bearish as long as the 0.9886 resistance area is intact.
Swiss Unemployment Rate
The rate of unemployment in Switzerland fell unexpectedly last month, the official data showed on Monday. The State Secretariat for Economic Affairs reported that Switzerland’s unemployment rate fell to a seasonally adjusted 3.3% from 3.4% in the preceding month. Analysts had expected Switzerland’s unemployment rate to remain unchanged at 3.4% last month.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy if we get a valid bearish reversal candle on the daily chart.
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