USD/CHF Continues above 50% Fibonacci
After Mr. Obama said a strong USD could hurt the economy, he basically erased all the good karma US dollar got after the positive NFP numbers on Friday. With not much economic data scheduled to be out from either the US or Swtitzerland this week, the fate of the pair is in hands of sudden surprise announcements or oil price actions that could move Ms. USA on the forex dance floor. We should probably just wait until next week's FOMC for a shake up, eh?
After the Jawboning on January 15, 2015, there is not much more to say about the Swiss economy and their jobs situation but that they're stable as usual. The seasonally adjusted jobless rate increased slightly by 0.1% to 3.3%, the first time that the jobless rate reached this level since April 2011. But it’s still within the 3% range, that is to say that it’s still very stable and very, very low. And that’s good.
So what does it mean for the Mr. Swiss Franc? Nothing much, really. Switzerland is more reliant on its industry than on consumer spending. The Swiss economy is also driven by foreign investments thanks to Switzerland’s status as a safe haven for investors. So unless the Swiss jobless rate suddenly goes up to 5% or falls to 1%, we’re unlikely to see any reaction from the market.
Forex Trading idea: Short term: range trade between 0.9290 and 0.9515. Long term: wait for confirmation above/ below the pivot points to identify a new trend.
Where to set your stops and limits on the Daily Chart:
|Support Levels||Turning Point||Resistance Levels|
*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.