USD/CHF finds support at 0.9260 after rejection at 0.9300

  • The dollar fails to break 0.9300 but it remains steady above 0.9260.
  • The pair extended losses following the release of NFP data.
  • USD/CHF: Decline below 0.9189 would alleviate bullish pressure – Commerzbank.

The US dollar has failed on its third attempt to regain the 0.9300 level, and retreated earlier today, to extend losses following the release of a disappointing US Non-Farm Payrolls report. The pair, however, has found support at 0.9260, before ticking up towards 0.9275 area on the late US session.

The dollar gives away gains after a weak job report

The greenback suffered following the release of September’s employment figures. Non-Farm payrolls increased by 194,000 against market expectations of nearly 500,000 new jobs, while Augusts’ reading was revised upwards, to 366,000 from the 235,000 increase previously estimated.  

These figures dented USD strength initially, although the negative impact only lasted until the investors came to terms with the fact that this would change the Federal Reserve’s plan to start rolling back its monetary stimulus measures over the coming months. Fed Chairman, Jerome Powell assured last month that a “decent” employment report in September would be enough to start tapering bond purchases.

USD/CHF: Decline below 0.9189 would mitigate upside pressure – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the risk remains skewed to the upside, while above 0.9189: “USD/CHF failed last week at the 78.6% retracement at .9357, but is so far holding over the near term uptrend at .9222. Intraday Elliott wave counts are negative and attention remains on the nearby uptrend and the 55-day ma at .9189. Failure here is needed to alleviate upside pressure.”

Technical levels to watch

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