According to our published analysis on 25th Aug, King Dollar did gain some bullish momentum from 0.9027 i.e 50% fibb retracement level and adapted to hawkish sentiments but failed to break above 61.8% fibb level i.e 0.9193 because of weak Non Farm Payroll figures. USDCHF edgedhigher in the Asian trading hours on Friday. After testing the high above 0.9150  in the previous session, the pair traded in a very close trade band in Fridays session and was trading at 0.9144, up 0.04% for the day.

The US Treasury yields trade lower at 1.28% with 0.68% losses. The US Dollar Index (DXY) moves in tandem with the benchmark 10-year yields movement and trades below 92.50, which capped the gains for USDCHF.  The weak U.S data release strengthened Swiss Franc and drove the pair lower towards 50% fibb level. USDCHF is still standing above our monthly pivot which is one of our strong supports and price action at the moment and is expected to be broken anytime soon if King Dollar didnt do something about it. The aforementioned would mark 38.2% as our next target i.e 0.9027.   

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The Initial Jobless Claims fell to the pandemic low in the week ending August 28th, its lowest level since March 2020. The reading came at 340K, below the market consensus of 345K. Furthermore, US companies announced 15,723 job cuts in August, the lowest since June 1997. However, the data failed to fuel the rally in the USD. any further advances will be restricted by the triangle’s upper line near 0.9185, a break of which will aim for August month’s high near 0.9242 with the 0.9200 threshold acting as an intermediate halt. Meanwhile, the triangle’s support near 0.9135 acts as an immediate hurdle to the south, a break of which will direct USD/CHF sellers to a late August low near 0.9100.

If the pair remains heavy below 0.9100, last month’s trough surrounding 0.9020 will be crucial to watch.

USDCHF

Sep 05 2021

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