Key Points
- The US Dollar after a slide towards 1.00 against the Swiss Franc found support and recovered.
- The USDCHF pair is now facing a major bearish trend line with resistance at 1.0080 on the hourly chart.
- Recently in the US, the Initial Jobless Claims (April 7, 2017) was released by the US Department of Labor.
- The outcome was better than the forecast, as the Initial Jobless Claims came in at 234K, down from the last revised reading of 235K.
USDCHF Technical Analysis
There was a sharp downside reaction from 1.0089 in the US Dollar to Swiss Franc. The USDCHF pair moved down, but found support just near 1.0000. Later, the pair started a recovery, and moved above the 50% Fib retracement level of the last decline from the 1.0089 high to 1.0008 low.
The pair traded close to the 1.0070 level where it found resistance and then started trading inside a triangle pattern. A close above the 61.8% Fib retracement level of the last decline from the 1.0089 high to 1.0008 low may call for more gains.
On the upside, the pair may face a major bearish trend line with resistance at 1.0080 on the hourly chart.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims (April 7, 2017) was released by the US Department of Labor. The forecast was lined up for a rise in the claims from the last reading of 234K to 245K in the week ending April 8.
The result was better than the forecast, as the Initial Jobless Claims came in at 234K. The last reading was revised from 234K to 235K. The report stated that the “4-week moving average was 247,250, a decrease of 3,000 from the previous week’s revised average. The previous week’s average was revised up by 250 from 250,000 to 250,250”.
Overall, the result was positive, which is why USDCHF may continue to trade higher towards 1.0080 in the near term.
