The USD/CHF has put together a bearish week. Rates are now beneath 0.9000 and looking to go lower. This price action should come as no surprise, given yesterday’s dovish FED statement and the election chaos of the past week. Along with gold and the Japanese yen, the Swiss franc has done a number on the Greenback.
During today’s pre-market hours, October’s Non-Farm Payrolls report was released to the public. Here’s a quick look at all of the key numbers:
Event Actual Projected Previous
Non-Farm Payrolls (Oct.) 638K 600K 672K
Unemployment Rate (Oct.) 6.9% 7.7% 7.9%
On queue, the U.S. Unemployment Rate has now dropped beneath the FED’s 7% projection for 2020. This is a major accomplishment from the record-high levels of last April, May, and June. However, the gains haven’t helped the Greenback much against the majors. For the USD/CHF, rates are trending south quickly.
USD/CHF Challenges 0.9000 Psyche Barrier
For most of the fall, forex traders have been watching the 0.9000 handle in the USD/CHF closely. The level has held up as valid support on several occasions during 2020 ― will it stand tall again?
As we roll into next week’s action, there is one level on my radar for this pair:
- Support(1): Psyche Level, 0.9000
Overview: Today’s close is going to be a big one for the USD/CHF. If we see a sub-0.9000 settlement, more bearish action may be on the way for Monday. Should rates rally and close above 0.9000, then an early week bounce may be in the cards.
If you’re taking open forex positions into the weekend break, remember the U.S. election continues to be in play. Should we see any key political developments, large moves are possible. Be sure to apply leverage prudently and be ready for the unexpected!