USD/CHF inching closer to weekly low after NFP

Haresh Menghani FXStreet

The USD/CHF pair's attempted recovery got sold into and the pair is now heading towards the lower end of weekly trading range.

Currently trading marginally below 1.0100 handle, the pair ran through fresh offers and drifted into negative territory after headline NFP print failed to impress US Dollar bulls and came-in to show an addition of 178K new jobs in November, slightly above 175K expected. Moreover, an unexpected contraction in average hourly earnings also disappointed markets and forced investors to further take profits from recent gains.

Meanwhile, a surprising drop in the unemployment rate to nine-year low level of 4.6% seems to have negated a big miss in average hourly earnings and extended some support to the greenback.

Looking at the broader picture, the pair still remains in near-term consolidation phase as market now build on to expectations for next Fed monetary policy action, beyond December meeting.

Technical levels to watch

Immediate support is pegged at 1.0080 level (weekly low) below which the pair is likely to immediately head towards 1.0050 intermediate support en-route testing parity mark. On the upside, 1.0120 level now become immediate hurdle, which if cleared seems to lift the pair towards 1.0170 before aiming to reclaim 1.0200 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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