Sellers unable to push USDCHF below 0.84; possible upward move?
The U.S. dollar to Swiss franc currency pair (USD/CHF) had been trading sideways above a key support level on the daily chart, marking the lowest price since 2015. In addition, a double bottom pattern has formed, signaling that sellers have been unable to continue pushing the price below 0.8400.
On Friday, Oct. 4, the USDCHF broke out of its sideways pattern on the daily chart, indicating potential buying momentum. A possible upward movement could take the price to the 0.8800 level in a few days.
Hot US jobs report, lower-than-expected unemployment favours the dollar
From a macroeconomic standpoint, Friday’s US nonfarm payroll (NFP) data came in well above expectations (254,000 actual vs. 147,000 forecast), pointing to a robust labor market with potential incoming growth over the coming months, which tends to favor the USD.
The NFP data also appears to have led markets to price out expectations of an outsized 50-basis-point interest rate by the Federal Reserve at its upcoming meeting — which could have led to more weakening in the US dollar.
The dollar has also benefited from safe-haven flows amidst rising tensions in the Middle East, with the IDF starting ground operations in Lebanon and Iran unleashing a large-scale ballistic missile attack on Israel for the second time.
Therefore, from a technical standpoint, we can observe the following:
USD/CHF at its lowest level since 2015.
Formation of a double bottom on the daily chart.
Sideways movement above support.
Friday's breakout indicating a potential uptick in buying activity.
From a macroeconomic standpoint, the following factors are in play:
NFP data surpassed expectations (254,000 actual vs. 147,000 forecast).
Unemployment rate came in lower than expected (4.1% actual vs. 4.2% forecast).
Together, these factors suggest that USD/CHF could appreciate, potentially reaching 0.8800 in the near term.
Disclaimer:
74% 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. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
On Friday, Oct. 4, the USDCHF broke out of its sideways pattern on the daily chart, indicating potential buying momentum. A possible upward movement could take the price to the 0.8800 level in a few days.
Hot US jobs report, lower-than-expected unemployment favours the dollar
From a macroeconomic standpoint, Friday’s US nonfarm payroll (NFP) data came in well above expectations (254,000 actual vs. 147,000 forecast), pointing to a robust labor market with potential incoming growth over the coming months, which tends to favor the USD.
The NFP data also appears to have led markets to price out expectations of an outsized 50-basis-point interest rate by the Federal Reserve at its upcoming meeting — which could have led to more weakening in the US dollar.
The dollar has also benefited from safe-haven flows amidst rising tensions in the Middle East, with the IDF starting ground operations in Lebanon and Iran unleashing a large-scale ballistic missile attack on Israel for the second time.
Therefore, from a technical standpoint, we can observe the following:
USD/CHF at its lowest level since 2015.
Formation of a double bottom on the daily chart.
Sideways movement above support.
Friday's breakout indicating a potential uptick in buying activity.
From a macroeconomic standpoint, the following factors are in play:
NFP data surpassed expectations (254,000 actual vs. 147,000 forecast).
Unemployment rate came in lower than expected (4.1% actual vs. 4.2% forecast).
Together, these factors suggest that USD/CHF could appreciate, potentially reaching 0.8800 in the near term.
Disclaimer:
74% 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. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.