USD/CHF tests major resistance ahead of US employment reports

FXOpen

USD/CHF yesterday faced rejection at the major resistance area around 0.8925 before testing the same resistance on Friday ahead of the US employment reports.

Technical Analysis

As of this writing, USD/CHF is being traded near 0.8926. Resistance may be seen around 0.8925-35 that is the 50% fib level as well as trendline resistance. A daily closing above the 0.8935 area could push the pair into renewed bullish trend, targeting the 0.9200 handle.

usdchf-d1-capital-trust-markets

On the downside, the pair is likely to find support around 0.8896, the 55 Daily Moving Average (DMA), ahead of 0.8869 that is the 38.2% fib level. The pair is bullish in short to medium term unless the price breaks the lower trendline on the daily chart.

Nonfarm Payrolls

The Labor Department of the US is due to release the nonfarm payrolls figure today. The number of new jobs increased to 200K in March as compared to 175K in the month before, the average forecast of different analysts says. Better than anticipated actual reading will be seen as bullish for USD/CHF and vice versa.

Unemployment Rate

The labor department will also release the unemployment rate figure today. According to forecast, the jobless rate declined by 0.1% to 6.6% last month compared with 6.7% in the month before. Not to mention that 6.5% is the threshold set by the US central bank. The Federal Reserve might consider tight monetary policy once the jobless rate falls below the 6.5% target, as per forward guidance.

Conclusion

Trading USD/CHF on breakouts appears to be the least risky strategy. The pair might break the upper trendline on better than expected employment reports. Since tapering in the stimulus is linked to improvement in the labor market, so another cut in QE during the forthcoming US monetary policy is also expected if the data comes better than expectations.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Palantir Technologies (PLTR) Shares Pull Back from Another High
Shares

Palantir Technologies (PLTR) Shares Pull Back from Another High

Shares in Palantir Technologies (PLTR), a company specialising in big data analytics software, have seen phenomenal growth in 2024, surging by approximately 340%, making it the top performer in the S&P 500 (US SPX 500 mini on FXOpen)

USD/CAD Rate Drops Towards Yearly Lows
Forex Analysis

USD/CAD Rate Drops Towards Yearly Lows

The USD/CAD chart is currently showing clear signs of a bearish trend, characterised by a sequence of lower highs and lower lows (A→B→C→D→E→F→G).

This week’s decline suggests the downward structure may continue

Apple (AAPL) share price slips towards psychological $200 level
Shares

Apple (AAPL) share price slips towards psychological $200 level

Yesterday, Apple shares (AAPL) fell by 2.5%, edging closer to the key psychological threshold of $200. Moreover, the stock is underperforming the broader market, which reached new highs earlier this week — a move AAPL has yet to replicate.

Why

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. 60% 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.