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USDCHF Dived As Jobless Claims Increases

Key Points

  • US dollar traded down against most major currencies today, including the Swiss franc.
  • The USDCHF pair fell and traded below the 1.0000 support area to trade as low as 0.9943.
  • The Initial Jobless Claims released by the US Department of Labor posted an increase from the last reading of 278K to 285K.
  • Moreover, the Continuing Jobless Claims were also disappointing, and came in at 2.255M.

Technical Analysis

The US Dollar fell today against a basket of currencies, including the Swiss franc. There was a small flag pattern formed on the hourly chart, which was cleared by sellers to take the USDCHF pair down. The pair today traded as low as 0.9943, and looks set for more losses in the near term.

USDCHF

On the upside, a correction may take the USDCHF pair towards the 50% Fib retracement level of the last drop from the 1.0074 high to 0.9943 low, which is coinciding with the 1.0000 handle.

On the downside, a break below the recent low could take the USDCHF pair towards the 0.9920 level.

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 the last reading of 278K to 280K. However, the outcome was disappointing, as the US Initial Jobless Claims rose to 285K.

Moreover, the US Continuing Jobless Claims also missed the mark, and posted a reading of 2.255M, more than the forecast of 280K.

Overall, the US dollar looks like under a lot of bearish pressure and if the sellers remain in action, the USDCHF pair may slide towards 0.9920.

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