USD/CHF Holding Stable Above 0.9900 Level Ahead of NFP

USD/CHF Holding Stable Above 0.9900 Level Ahead of NFP

3 June 2016, 09:49
Roberto Jacobs

USD/CHF Holding Stable Above 0.9900 Level Ahead of NFP

The USD/CHF pair seems to consolidate above 0.9900 handle following a smart recovery from a two-week low level of 0.9858 touched on Thursday. 

Thursday's recovery was led by broadly in-line with consensus estimates from two labor market indicators from the US. The private-sector employment report (ADP report) showed US economy added 173k new private-sector jobs during the month of May, while weekly jobless claims dropped by 1,000 to 267,000. 

The pair has been gaining traction on rising expectations of a Fed rate-hike in June/July and has assisted the pair to register a remarkable recovery from multi-month low levels of 0.9444 tested in early May. The pair, however, seems to face difficulty in extending its bullish momentum and has repeatedly failed to move beyond 2-1/2 month high level of 0.9956 formed earlier during the week. 

Heading towards the release of the much awaited NFP data, investors seem to take a cautious stance and might wait for the actual release before taking near-term directional call.

Technical levels to watch

On the immediate upside, 0.9950-55 area might continue to act as immediate resistance, which if conquered should boost the pair immediately towards reclaiming parity mark. 

Conversely, weakness back below 0.9880 level seems to find support near 0.9845-50 area. This is closely followed by 100-day SMA support near 0.9825 region. A sustained break below 100-day SMA now seems to extend the pair's corrective move till 0.9780 horizontal support.


Share it with friends: