USD/CHF Forecast – US Dollar Trading Near Crucial Support Vs Swiss Franc

USD/CHF Forecast – US Dollar Trading Near Crucial Support Vs Swiss Franc

  • – The US Dollar started a correction after trading close to the 0.9840 level against the Swiss Franc.
  • – There is a major bullish trend line forming with support at 0.9770 on the hourly chart of USD/CHF.
  • – Today in Switzerland, the Unemployment Rate for Sep 2017 was released by the State Secretariat for Economic Affairs (SECO).
  • – The outcome was better than the forecast, as there was a decline in the rate from 3.2% to 3.1% (MoM).

 

Swiss Unemployment Rate

Today in Switzerland, the Unemployment Rate for Sep 2017 was released by the State Secretariat for Economic Affairs (SECO). The market was not looking for any change in the unemployment rate from 3.2% compared with the previous month.

 

The actual result was better than the forecast, as there was a decline in the rate from 3.2% to 3.1%. Looking at the Youth unemployment (15 to 24 year olds), there was a decline of -5.6%, and the number of unemployed 50 fell by around 0.5%. The report added that:

 

133,169 unemployed persons were registered with the regional employment services centers (RAV), 2,409 less than in the previous month. The unemployment rate remained at 3.0% in the reporting month. Compared to the previous month, unemployment fell by 9’506 persons (-6.7%).

 

The USD/CHF pair is currently trading near a major support at 0.9770, which holds the key for the next move in the near term.

 

USD/CHF Technical Analysis

The US Dollar remains in a nice uptrend above 0.9720 against the Swiss Franc. The USD/CHF pair recently traded above the 0.9800 handle and posted a high at 0.9836. Later, a correction was initiated from the mentioned high and the pair moved below the 0.9800 handle.

 

USD/CHF Technical Analysis US Dollar Swiss Franc

 

There was a break below the 23.36% Fib retracement level of the last wave from the 0.9711 low to 0.9836 high. However, pair is now trading near a major support area at 0.9770 and the 100 hourly simple moving average.

 

There is also a major bullish trend line with support at 0.9770 on the hourly chart aligned with the 50% Fib retracement level of the last wave from the 0.9711 low to 0.9836 high. Therefore, the mentioned trend line support at 0.9770 holds a lot of importance for the next move.

 

If the pair holds above 0.9770 and breaks a connecting bearish trend line at 0.9790, there can be more upsides. Alternatively, a downside break of 0.9770 could push USD/CHF towards 0.9720.

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