The USD/CHF pair is the fifth most traded currency in the forex market and is referred as “swissie,” marking as a safe haven pair led by its stable performance and is considered as a reserve currency in the global markets.
The currency changed hands at 0.17% and settled at a new fresh highs of 0.9790, which tried to reach 0.98 high. Meanwhile, demands for the US dollar is likely attempting an upward pace, citing bulls continue to pull the Friday’s Fed speech over the US employment data, while a better-than-expected risk is anticipated.
At present, sentiments around the US dollar sees support amid the approaching early European session, with the USD index gaining 0.19% to fresh session highs of 96.70.
The disappointing Swiss employment report, which affected the CHF added an optimism on the bullish tone seen in the currency pair. In addition, the September Swiss unemployment rate remained unchanged at 3.2% against the same expected level.
Current Stance of the USD/CHF Pair
The chart below illustrates the currency pair’s stance amid dollar’s soaring pace over the Federal Reserve speech on the US employment data and the disappointing Swiss employment report, which send CHF to rally.
It is essential to note that market players could now open for Buy position as the currency pair’s trend suggest an upside bias.
In essence, the pair showed consolidating movement around 0.9700-0.9800 area and attempted to break out at resistance 0.9810 amid Friday’s session. However, the pair returned to its earlier position and fall into a weekend at 0.9775 level.
Investors are expected to closely watch on the upcoming major remains of the Fed’s speech, the FOMC meeting minutes and the US retail sales report scheduled later this week.
Supporting Trend: Weekly Basis
The chart above suggests market players to open Buy positions for the pair as it is expected to further rally. Hence, here’s another illustrative chart supporting the study. The third candle signaled to open Buy positions on September 18, which in fact did confirm a slight rally on the green amid the session until today’s trade in a light trading volume.
Thus, today’s session positioned significantly away from the support line, suggesting the price movement could consolidate or rally.
Given that buying of the USD/CHF pair is driven by the US dollar’s surging pace over the Federal Reserve speech regarding the US employment report and the strengthening Swiss Franc with the unimpressed Swiss employment data, we conclude that the pair will continue to surge further or consolidate as the present candlestick is positioned significantly away from the support level.
Moreover, the upcoming remains of the Federal Reserve’s speech, along with the FOMC meeting minutes and the US retail sales data set to be issued later this week, are expected to affect the currency pair.
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