USD/CHF Price Analysis: Range-bound within 0.9150-0.9200 after US jobs report
- The USD/CHF eyes to finish the week with losses, down 1.03%.
- Global equity indices record losses on a busy week impacted by economic data and geopolitical news.
- USD/CHF Technical Outlook: Neutral biased, confirmed by the DMAs with an almost horizontal slope confined to a 15-pip range.
The USD/CHF climbs for the third day in the week, but it would end the week in the red following Monday’s 1% loss, which pushed the USD/CHF below the daily moving averages (DMAs). All that amid a risk-off market mood, portrayed by global equities recording losses, blamed on Ukraine-Russia’s tussles. At the time of writing, the USD/CHF is trading at 0.9188
In the meantime, the US Dollar Index, which reached a new YTD high around 98.992, aimed higher, 0.85%, sitting at 98.62, while US Treasury yields dropped amid a safe-haven bid.
US Labor market crushed expectations, green light for a Fed rate hike
On Friday, the US Department of Labor reported that the US economy added 678K new jobs in February, higher than the 400K foreseen. Also, the Unemployment Rate ticked lower, while average hourly earnings edged slightly down.
Read more: Breaking: US Non-farm Payrolls rises by 678K in February versus median forecast for 400K gain
USD/CHF Price Forecast: Technical outlook
The USD/CHF is neutral biased, and one could argue that neutral-downward because the daily moving averages (DMAs) reside above the spot price. However, the almost flat slope and confined to within a 14-pip range keeps traders indecisive on which path to take.
Putting the DMA’s aside, upwards, the USD/CHF first resistance would be 0.9200. Once that level is cleared, the next supply zone would be the 0.9260-75 area and the 0.9300 mark. On the flip side, the 0.9150 February 21 daily low would be the first support, followed by December 31, 2021, daily low at 0.9102.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
