Key Points
- The US Dollar was seen trading lower against the Swiss Franc, as it moved below 1.0080.
- There is a bearish trend line formed on the hourly chart of USDCHF, which acted as a resistance near 1.0122 and pushed the pair down.
- The US Initial Jobless Claims figure was released by the US Department of Labor recently.
- The result was below the forecast, as there was a decrease from the last revised reading of 249K to 234K.
USDCHF Technical Analysis
The US Dollar declined recently against the Swiss Franc, and moved below the 1.0080 support area. Later, the USDCHF pair found a bullish trend line on the hourly chart at 1.0035, which prevented losses and pushed the pair back higher.
At the moment, the pair is correcting higher, but may face sellers near the 21 hourly simple moving average at 1.0056 or the 38.2% Fib retracement level of the last decline from the 1.0122 high to 1.0035 low.
On the upside, there is also a bearish trend line waiting near 1.0100-1.0120 to act as a resistance if the pair moves further higher.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor.
The market was positioned for an increase from 247K to 254K, but the result was below the forecast, as there was a decrease from the last revised reading of 249K to 234K. The report added that the “previous week’s level was revised up by 2,000 from 247,000 to 249,000. The 4-week moving average was 246,750, a decrease of 10,250 from the previous week’s revised average”.
Overall, the USDCHF pair may bounce a bit from the current levels, but likely to face sellers near 1.0080 or near the highlighted bearish trend line.
