USD/CHF consolidates weekly gains above 0.9000, eyes on US NFP data

USD/CHF stages a technical correction after Thursday's upsurge.
US Dollar Index posts small daily losses, stays near 91.50.
Markets expect Nonfarm Payrolls in US to rebound following December's decline.

Eren Sengezer FXStreet

The USD/CHF pair finally broke above the key 0.9000 level on Thursday and touched its highest level in more than two months at 0.9046. On Friday, the pair is trading in a relatively tight range and was last seen losing 0.12% on the day at 0.9033.

Focus shifts to US NFP report

The USD's market valuation remains the primary driver of USD/CHF's movements this week. The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, extended its rally into a fifth straight day on Thursday and rose above 91.50 for the first time since early December. The upbeat macroeconomic data releases from the US revived optimism for a steady economic recovery in the US and allowed the USD to outperform its rivals.

Later in the session, the US Bureau of Labor Statistics will publish its monthly labour market report. Investors expect Nonfarm Payrolls (NFP) to increase by 50,000 in January following December's decrease of 140,000.

Previewing the NFP data, "we estimate that non-farm payroll employment was broadly unchanged in January but the recent fiscal support and drop-back in new virus cases suggest the labour market recovery will resume soon,” said Capital Economics analysts.

Nonfarm Payrolls Preview: Forecast from 10 major banks for January jobs report.

A better-than-expected NFP print could help the USD regather its strength and lift USD/CHF higher ahead of the weekend.

Technical levels to watch for

USD/CHF

Overview
Today last price	0.903
Today Daily Change	-0.0010
Today Daily Change %	-0.11
Today daily open	0.904

Trends
Daily SMA20	0.8904
Daily SMA50	0.8893
Daily SMA100	0.9015
Daily SMA200	0.9194

Levels
Previous Daily High	0.9042
Previous Daily Low	0.8984
Previous Weekly High	0.8919
Previous Weekly Low	0.8848
Previous Monthly High	0.8926
Previous Monthly Low	0.8758
Daily Fibonacci 38.2%	0.902
Daily Fibonacci 61.8%	0.9006
Daily Pivot Point S1	0.9002
Daily Pivot Point S2	0.8964
Daily Pivot Point S3	0.8945
Daily Pivot Point R1	0.906
Daily Pivot Point R2	0.9079
Daily Pivot Point R3	0.9117

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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