The US Dollar (USD) extended upside movement against the Swiss Frank (CHF) on Friday, increasing the price of USDCHF to more than 0.9680 following the release of some key economic data from the United States. The technical bias remains bearish because of a Lower Low in the recent downside move.
As of this writing, the pair is being traded near 0.9683. A hurdle may be noted near 0.9800, the confluence of psychological number as well as swing high of the last major upside rally ahead of 0.9900, a key horizontal resistance area.
On the downside, the pair is likely to find a support around 0.9500, the confluence of horizontal support as well as psychological number ahead of 0.9444, the swing low of the recent downside wave as demonstrated in the above daily chart. The technical bias will remain bearish as long as the 0.9797 resistance area is intact.
US Jobless Claims
The number of Americans filing for unemployment benefits rose more than expected last week, posting the biggest gain in more than a year, but the underlying trend continued to point to a strengthening labor market. Another report on Thursday showed a 35 percent surge in planned layoffs by U.S.-based employers last month. Most of the announced job cuts were concentrated in the energy sector, which is reeling from low oil prices that have hurt profits. Initial claims for state unemployment benefits increased 17,000 to a seasonally adjusted 274,000 for the week ended April30, the Labor Department said. Last week’s increase was the largest since February of last year.
Considering the overall technical and fundamental outlook, selling the pair around above mentioned resistance levels could be a good strategy if we get a valid bearish reversal candle on the daily chart.
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