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Market Analysis

Home » Featured » USDCHF – Look for More Losses

USDCHF – Look for More Losses

Posted by FXTimes in Featured - December 3rd, 2015 2:52 pm GMT

US dollar USDJPY Japanese yen

Key Points

  • US Dollar dived sharply after the ECB interest rate decision that ignited a rally in the risky assets.
  • USDCHF dived sharply and it looks like the pair is now below a key support area, which may act as a resistance moving ahead.
  • ECB decreased the deposit rates by -0.10%, which resulted in a lot of volatility in EURUSD and USDCHF.
  • US Initial Jobless Claims released by the US Department of Labor posted an increase from the last reading of 260K to 269K.

Technical Analysis

The USDCHF pair broke a major channel support area recently and traded lower. Later, during the ECB event, the pair came under a lot of pressure and traded lower. The pair traded towards 1.0100 and currently making an attempt to recover higher.


The upside in the pair may find resistance near the 50% Fib retracement level of the last drop from the 1.0258 high to 1.0101 low.

The pair is also below the 100 and 200 hourly MA which is a bearish sign is.

US Initial Jobless Claims

Today, the 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 the last reading of 260K to 268K. However, the increase was on the higher side with a reading of 269K.

The report stated that “in the week ending November 28, the advance figure for seasonally adjusted initial claims was 269,000, an increase of 9,000 from the previous week’s unrevised level of 260,000. The 4-week moving average was 269,250, a decrease of 1,750 from the previous week’s unrevised average of 271,000“.

Overall, the ECB interest rate decision and the US initial jobless claims ignited a downside reaction in the US Dollar that might continue in the near term.

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