The U.S. dollar is grabbing the spotlight today as Uncle Sam rolls out the latest labor market numbers.
We’ve got our eyes on USD/CHF after the pair just bounced off a key trend resistance area.
What do you think of this setup?
The U.S. dollar turned higher on Thursday even as 10-year Treasury yields slipped, a sign that traders are brushing off recession worries despite softer labor market signals.
As for the Swiss franc, it could see fresh safe haven demand if Uncle Sam’s August jobs numbers end up weighing on the Greenback.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF has been stuck in a downtrend since August, printing lower highs and lower lows.
Right now, it’s struggling to clear the .8080 area, and for good reason. That level lines up with the R1 Pivot Point at .8058 and the top of a descending channel that’s been intact since early August.
If we start seeing red candlesticks, that could be the market’s way of saying momentum is still bearish, with a pullback toward .8000 on the table, maybe even down to .7980 or new multi-month lows.
But if buyers step in and we get green candles above .8050, then we might be looking at a break higher. In that case, USD/CHF could take a run at the .8100 psychological handle or even the .8150 highs from August.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
