Buying the Retreat in USD/CHF After Swiss Employment Numbers

The CHF to USD rate has been holding stable in a 1-cent range for about a month, as uncertainty regarding the SNB and the FED rate cuts remains high. Yesterday we saw a retreat to the bottom of the range in this pair, so we decided to open a buy USD/CHF signal, as the price was finding support on the H4 chart.

USD/CHF H4 Chart – The 100 SMA Is Holding As Support

In the H4 chart of USD/CHF, there has been a consolidation phase below the 0.89 high since early February, with the overall trend remaining slightly positive. Despite a recent rejection from the high following weaker-than-expected US ISM Manufacturing PMI data, buyers quickly entered the market at the 50-moving average (yellow), driving the price back up.

Observing the price action, we can see that USD/CHF has recently found support around the 0.88 level, where the 100 SMA (green) is also situated. This level serves as a significant area for potential buyer participation, especially if the price revisits it, providing an opportunity for buyers to enter with a defined risk below this level.

We went long on this forex pair yesterday just above this level. If this consolidation persists, buyers will likely become more active around the bottom of the range. Yesterday the price formed a doji candlestick above the 100 SMA which is a bullish revering signal after the retreat and we decided to buy.

US Unemployment Report for February

• February seasonally adjusted unemployment rate 2.2% vs 2.2% expected
• Prior seasonally adjusted unemployment rate was 2.2%
• The Swiss jobless rate held steady last month, with the number of registered unemployed persons seen declining slightly from 113,175 in January to 111,879 in February.

USD/CHF Live Chart

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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