Key Points
- US Dollar managed to move higher vs the Swiss Franc and broke a major resistance area of 0.9640-50.
- There was a monster bearish trend line formed on the 4-hours chart of the USDCHF, which was broken during the upside move.
- Today, the US nonfarm payrolls report will be released by the US Department of Labor.
- The market is expecting a reading of 200K in April 2016, compared with the last reading of 215K.
Technical Analysis
The US dollar enjoyed a decent upside move against the Swiss Franc, and settled above the 100 and 200 simple moving average on the 4-hours chart. Moreover, there was a monster bearish trend line formed on the 4-hours chart of the USDCHF, which was cleared by the bulls during the upside move.
All in all it looks like the USDCHF pair is in an uptrend, and any dips from the current levels toward the 100 SMA (H4 chart) may find buyers.
One may consider buying dips in the USDCHF pair, but with a caution as there is a monster economic release lined up in the US.
US NFP
Today in the US, the nonfarm payrolls will be released by the US Department of Labor. The forecast is slated for the number of new jobs created during the previous month, in all non-agricultural business to post 200K in April 2016, compared with the last reading of 215K.
The US Unemployment Rate will also be released today, and the market is expecting no change in the rate in April 2016.
Let us see how the outcome shapes up. The USDCHF pair may be volatile during the news release, and we might witness some spikes in the US Dollar.
