Key Points
- The US Dollar traded sharply lower this week and tumbled by more than 200 pips towards 0.9760 against the Swiss Franc.
- There are two bearish trend lines formed at 0.9820 and 0.9835 on the hourly chart of USDCHF.
- Recently in the US, the Initial Jobless Claims (May 12) report was released by the US Department of Labor.
- The result was above the forecast, as Claims declined to 232K, and helped USDCHF find support near 0.9760.
USDCHF Technical Analysis
The US Dollar was under a lot of pressure and traded sharply lower this week by more than 200 pips from the 1.0070 swing high against the Swiss Franc. The USDCHF pair declined and broke support levels like 1.0000, 0.9900 and 0.9850.
The pair even broke the 21 hourly simple moving average to trade as low as 0.9759 where it found support and currently consolidating.
The pair is currently correcting higher and may face resistance near the 21 hourly simple moving average, and two bearish trend lines at 0.9820 and 0.9835 on the hourly chart. The 23.6% Fib retracement level of the last decline from the 1.0070 high to 0.9759 low at 0.9834 may also act as a resistance.
US Initial Jobless Claims
The US recently saw the release of the Initial Jobless Claims (May 12) by the US Department of Labor. The market was not looking for any decline this time from 236K.
The outcome was better, as instead of an increase, there was a decline of 4K in claims from 236K to 232K. The report stated that “In the week ending May 13, the advance figure for seasonally adjusted initial claims was 232,000, a decrease of 4,000 from the previous week’s unrevised level of 236,000“.
Overall, the USDCHF pair may continue to face sellers on corrections towards 0.9830-40 in the near term.
