- US Dollar may be heading for a major break against the Swiss Franc, and could trade higher.
- The USDCHF pair is trading near a bearish trend line on the hourly chart, which if broken may take the pair higher.
- US Initial Jobless Claims released by the US Department of Labor posted an increase from 262K to 272K.
- US Continuing Jobless Claims posted a better than forecasted reading and came in at 272K.
The US Dollar after trading below the 200 hourly simple moving average found support near 0.9850 against the Swiss Franc. The USDCHF pair is currently trading higher and moved back above the 200 SMA.
However, there is a bearish trend line on the hourly chart of the USDCHF pair, which if broken may take the pair higher in the near term. The pair is just around the 100 SMA, which may be a concern for the bulls.
On the downside, the 50 hourly simple moving average may be seen as a support area for the USDCHF pair, followed by the 200 SMA.
US Initial Jobless Claims
Today, the US Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor. The market was expecting an increase from 262K to 270K. However, the outcome was disappointing, as the US Initial Jobless Claims increased to 272K.
However, on the positive side, the US Continuing Jobless Claims posted a better than forecasted reading. It came in at 272K, compared with the forecast of 2.260M.
Overall, it looks like the USDCHF pair may break the highlighted trend line resistance area, and could trade near 0.9960.