USD/CHF jumps back closer to overnight swing high, around 0.9235 area ahead of NFP

USD/CHF gained strong traction on Friday, though the move up lacked any obvious catalyst.
A softer risk tone could benefit the safe-haven CHF and cap gains amid the USD selling bias.
The focus remains on the release of the closely-watched US monthly jobs data, or NFP report.

Haresh Menghani FXStreet

The USD/CHF pair added to its intraday gains and shot back closer to the overnight swing high, around the 0.9235 region heading into the North American session.

The pair caught some fresh bids on the last day of the week and might now be looking to build on the overnight bounce from the weekly low. The strong intraday move up, however, lacked any obvious fundamental catalyst and could be attributed to some repositioning trade ahead of the key US NFP report. This, in turn, warrants some caution before placing aggressive bullish bets around the USD/CHF pair amid the prevalent US dollar selling bias.

The USD languished near a two-and-half-week low touched earlier this Friday and was pressured by the post-ECB strength in the shared currency. Apart from this, retreating US Treasury bond yields turned out to be another factor that undermined the greenback. Conversely, a generally weaker tone around the equity markets should benefit the Swiss franc's safe-haven status and further contribute to keeping a lid on any meaningful upside for the USD/CHF pair.

The market focus will remain glued to the closely-watched US monthly employment report, which is expected to show that the economy added 150K jobs in January. Given Wednesday's awful ADP report on private-sector employment, there is a considerable risk of a negative surprise from the official figures. This would be enough to exert additional pressure on the already weaker greenback and attract fresh selling around the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9222
Today Daily Change	0.0008
Today Daily Change %	0.09
Today daily open	0.9214

Trends
Daily SMA20	0.9196
Daily SMA50	0.92
Daily SMA100	0.9218
Daily SMA200	0.9168

Levels
Previous Daily High	0.9236
Previous Daily Low	0.9177
Previous Weekly High	0.9338
Previous Weekly Low	0.9109
Previous Monthly High	0.9343
Previous Monthly Low	0.9092
Daily Fibonacci 38.2%	0.9214
Daily Fibonacci 61.8%	0.92
Daily Pivot Point S1	0.9182
Daily Pivot Point S2	0.915
Daily Pivot Point S3	0.9124
Daily Pivot Point R1	0.9241
Daily Pivot Point R2	0.9268
Daily Pivot Point R3	0.9299

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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