fxs_header_sponsor_anchor

News

USD/CHF declined further, eyes on bearish cross between the 20 and 200-day SMA

  • USD/CHF fell to 0.9050, seeing 0.30% losses.
  • The USD is losing interest due to the Fed dovish tone on Wednesday’s decision.
  • Ahead of October’s Nonfarm Payrolls, the US reported weak labor market data.
  • Indicators flash signals of further downside.

In Thursday’s session, the USD/CHF saw red, mainly driven by a broad USD weakness following the Federal Reserve’s (Fed) and Jerome Powell’s remarks on Wednesday. In addition, soft labour market data is adding to the Greenback’s weakness.

On Wednesday, Jerome Powell hinted that the bank has covered significant ground. He stated that for the next decision, tighter financial conditions will be considered, as well as the cumulative effects for the next decisions. As a reaction, markets took those messages as a signal that interest rates reached its peak, which triggered a wave of risk-on flows which weakened the US Dollar.

Ahead of October’s Nonfarm Payroll on Friday, the U.S. Department of Labor revealed that the Initial Jobless Claims from the week ending in October 28 came in above the consensus. The people filling for unemployment benefits came in at 217,000, higher than the consensus 210,000 and increased concerning its last reading of 212,000.

For Friday’s job report, markets expect that the US economy added 118,000 jobs, decelerating from its revised September reading of 336,000. Wage inflation measured by the Average Hourly Earnings is forecasted to slightly decelerate while Unemployment is expected to remain steady at 3.8%. 

 USD/CHF Levels to watch 

 Upon evaluating the daily chart, a neutral to bearish outlook is seen, with the balance starting to lean in favour of the bears, although they still have hurdles to overcome. The Relative Strength Index (RSI) has a negative slope above its midline, indicating weakening buying pressure, while the Moving Average Convergence (MACD) histogram shows rising red bars.

In addition, it is worth noticing that the 20 and 200-day Simple Moving Averages (SMA) are converging towards 0.9000 en route to perform a bearish cross, which could fuel further downside movements.

 Support levels: 0.9030, 0.9015, 0.9000 (20 and 200-day SMA convergence)

 Resistance levels: 0.9060, 0.9080, 0.9100.

 

USD/CHF Daily chart

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.