- US Dollar is in a downtrend against the Swiss franc, but it may soon break higher.
- There is a descending channel pattern formed on the hourly chart of the USDCHF pair, which may be broken to clear the way for more losses.
- US Initial Jobless Claims released by the US Department of Labor posted a decrease from the last reading of 276K to 267K.
- Moreover, the US Continuing Jobless Claims rose from the last revised reading of 2.172M to 2.191M.
The US Dollar traded down against the Swiss Franc this week and tested the 0.9520 support area. There is a descending channel pattern formed on the hourly chart of the USDCHF pair, which is pushing the pair down and there was a false break noted as well.
However, if the US Dollar bulls manage to break the channel resistance area, then there is a chance of a sharp upside move in USDCHF.
On the downside, the channel support area and the 0.9500 level hold the key.
US Initial Jobless Claims
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 forecast was a decline from 276K to 270K, but it came in at 267K. On the other hand, the Continuing Jobless Claims increased from the last revised reading of 2.172M to 2.191M.
Adding on the release, the report stated, “In the week ending April 2, the advance figure for seasonally adjusted initial claims was 267,000, a decrease of 9,000 from the previous week’s unrevised level of 276,000. The 4-week moving average was 266,750, an increase of 3,500 from the previous week’s unrevised average of 263,250“.
Overall, the US Dollar may gain bids moving ahead, and could trade above the highlighted channel resistance area versus the Swiss Franc.