USD/CHF is trading at the 0.9161 level, but it could drop in the short term as Switzerland’s Unemployment Rate dropped unexpectedly from 3.4% to 3.3% in September. Technically, the pair was somehow expected to give birth to another upside momentum but now is premature to go long unless we’ll have a clear bullish signal.
The USD could take the lead if the US Unemployment Claims drops below expectations. USD/CHF was into a corrective phase after the most recent upwards movement, that’s why we could think that the pair could start to increase again soon.
USD/CHF has found support right on the S1 (0.9144) level and now is trading above the minor downtrend line. Still, I believe that only a valid breakout above the Pivot Point (0.9219) could really validate another leg higher.
You should know that a further drop and a new lower low, drop below 0.9133 signals further drop towards the S2 (0.9086) static support. Another false breakdown below the S1 and through the minor downtrend line, a rejection, could attract more buyers in the short term.
- USD/CHF Trading Tips
Sell a bearish closure below 0.9133 former low. The S2 (0.9086) and 0.9056 should be used as targets.
Buy a bullish closure above the PP (0.9219) with an immediate upside target at 0.9296 high.