USDCHF Eyes 1.0000 As Bulls Remain In Control

The US Dollar (USD) extended upside movement against the Swiss Franc (CHF) on Wednesday, increasing the price of USD/CHF to more than 0.9880 as bulls gain momentum. The technical bias already remains bullish because of a Higher Low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded near 0.9885. A hurdle may be noted around 0.9956, a major horizontal resistance area as demonstrated in the given below chart ahead of 1.0000, a key psychological level and then 1.0037, another major horizontal resistance area.

On the downside, the pair is likely to find a support around 0.9795-0.9800, the confluence of a psychological number, horizontal support and intraday low of yesterday ahead of 0.9693-0.9700, the confluence of another major horizontal support and psychological number.

JOLTS Job Openings

Job openings in the US slid in May, the Bureau of Labor Statistics said on Tuesday. There were 5.5 million job openings in May, down from 5.79 million job openings in April, according to the Job Openings and Labor Turnover Summary (JOLTS) report.

At a 3.7 percent rate, May’s results marked the fewest job postings since December. The decline in jobs advertised by employers was focused mainly in the private sector, especially in the South and Midwest regions of the U.S. The monthly report from the Labor Department is a closely followed barometer of economic conditions, measuring job postings in different sectors, and the number of hires and layoffs — which were tepid in May.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair on dips still appears to be a good strategy in short to medium term.'
Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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