⚡Crypto Alert : Start Trading Cryptos with 0 Fees - Click Here

USD/CHF Tests The Waters Beneath 0.9000

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?

USD/CHF, Weekly Chart

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!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Shain Vernier
US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles