USDCHF: The franc continues to strengthen

USD/CHF, currency, USDCHF: The franc continues to strengthen

Taking advantage of the weakness of the dollar, the sellers of USD/CHF develop a "bearish" offensive. At the moment the pair is testing the support of 0.9595.

At the end of last week the labor market data was released in Switzerland. The unemployment rate in the country is unchanged and remains at 2.0% for the third month. The volume of the manufacturing sector declined 0.5%, although analysts had expected a slight increase of 0.1%.

The dollar index is down to 108.50 but remains above its yearly average. Further DXY and USD/CHF dynamics will largely depend on tomorrow's US inflation report. The consumer price index is expected to fall from 8.5% to 8.1%.

Daily USD/CHF is in the confines of the downward channel. The alligator indicator begins to rebuild a moving average to the downside, the awesome oscillator stays in the positive area, but quickly descends to the zero level.

If the downtrend continues, it is advisable to wait for a break-down and fixation below 0.9539. Take profit is set at 0.9412. Stop loss is set at 0.9600.

Strong break above 0.9620 will tell about the return to buying. The target level is at 0.9770. Placement of a stop loss at 0.9580.

USD/CHF Daily Chart Forex
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