#USDCHF @ 0.90228 has fallen like a house of cards as US weekly jobless claims rose to a 19-month high at 261K. (Pivot Orderbook analysis)
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- USD/CHF has fallen like a house of cards as US weekly jobless claims rose to a 19-month high at 261K.
- Easing US labor market conditions might force the Fed to go for a neutral policy.
- SNB Jordan said it would not be a good idea to wait for inflation to rise and then raise interest rates.
The pair currently trades last at 0.90228.
The previous day high was 0.9107 while the previous day low was 0.9043. The daily 38.2% Fib levels comes at 0.9083, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9068, expected to provide resistance.
The USD/CHF pair has refreshed its weekly low at around 0.9030 after the release of 19-month low United States Initial Jobless Claims in the early New York session. Soaring jobless claims have dragged the US Dollar Index (DXY) sharply lower to near 103.60. The USD Index was auctioning in a range of 103.67-104.36 for the past two trading sessions and it seems that it is coming out of the woods now.
S&P500 futures have turned positive as a significant jump in the weekly initial jobless claims numbers indicates that tight labor market conditions are releasing some heat. Overall market mood has turned upbeat and the appeal for the risk-perceived assets has strongly improved.
As per the report, US weekly jobless claims for the week ending June 02 rose by 28K to 261K while the street was anticipating a figure of 235K, upwardly revised from the prior release of 233K. A major economic indicator that has been keeping the odds of one more interest rate hike from the Federal Reserve (Fed) is the strong labor market and now surprisingly higher jobless claims have increased support for a neutral interest rate policy by the Fed.
The impact of higher jobless claims is not restricted to the USD Index only. US Treasury yields have also come under extreme pressure. The yields offered on 10-year US government bonds have sharply dropped more than one percent to 3.78%.
The strength behind the dive move in the Swiss Franc asset has also come from hawkish commentary by Swiss National Bank (SNB) Chairman Thomas. J Jordan. SNB Jordan said it’s really important to bring Swiss inflation to a level of price stability,” He further added it would not be a good idea to wait for inflation to rise and then raise interest rates. Investors should note that the SNB has already raised interest rates to 1.50%.
Technical Levels: Supports and Resistances
USDCHF currently trading at 0.9028 at the time of writing. Pair opened at 0.9102 and is trading with a change of -0.81 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.9028 |
| 1 | Today Daily Change | -0.0074 |
| 2 | Today Daily Change % | -0.8100 |
| 3 | Today daily open | 0.9102 |
The pair is trading below its 20 Daily moving average @ 0.9031, above its 50 Daily moving average @ 0.8994 , below its 100 Daily moving average @ 0.9123 and below its 200 Daily moving average @ 0.9366
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.9031 |
| 1 | Daily SMA50 | 0.8994 |
| 2 | Daily SMA100 | 0.9123 |
| 3 | Daily SMA200 | 0.9366 |
The previous day high was 0.9107 while the previous day low was 0.9043. The daily 38.2% Fib levels comes at 0.9083, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9068, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.9061, 0.902, 0.8997
- Pivot resistance is noted at 0.9125, 0.9148, 0.9189
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.9107 |
| Previous Daily Low | 0.9043 |
| Previous Weekly High | 0.9148 |
| Previous Weekly Low | 0.9014 |
| Previous Monthly High | 0.9148 |
| Previous Monthly Low | 0.8820 |
| Daily Fibonacci 38.2% | 0.9083 |
| Daily Fibonacci 61.8% | 0.9068 |
| Daily Pivot Point S1 | 0.9061 |
| Daily Pivot Point S2 | 0.9020 |
| Daily Pivot Point S3 | 0.8997 |
| Daily Pivot Point R1 | 0.9125 |
| Daily Pivot Point R2 | 0.9148 |
| Daily Pivot Point R3 | 0.9189 |
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