USD/CHF Price Analysis: Reclaims the 0.9200 figure amid mixed US macroeconomic data
- US Initial Jobless Claims increased above the 200K mark, blaming resurgent Covid-19 cases.
- US ISM Non-Manufacturing (Services) PMI rose to 62.0, lower than the previous month's reading.
- USD/CHF Technical Outlook: It has a neutral bias.
On Thursday, during the New York session, the USD/CHF pair advances for the second time of the week, exchanging hands at 0.92016 at the time of writing. The market sentiment has improved as portrayed by US equities rising, while the Dow Jones trimmed earlier losses, now down some 0.14%.
In the overnight session, the USD/CHF was subdued, seesawing around the daily pivot point and the R1 daily pivot at the 0.9160-91 range. In the middle of the European session, the pair dipped to the confluence of the 50 and the daily pivot around 0.9158, to then resume the upward move on mixed economic data and rising US Treasury yields.
Mixed US economic data boosts the USD vs. the CHF
The US economic docket featured Initial Jobless Claims for the week ending on January 1, which showed an increase of 207K higher than the 197K estimated by economists. The 4-week moving average rose 204.5K, a tick more elevated than the 199.75K in the prior week.
In the meantime, the Institute for Supply Management (ISM) revealed that the ISM Services PMI for December came at 62.0, short of the 69.1 November reading. Despite shrinking, a reading above 50 indicates growth in the services sector.
USD/CHF Price Forecast: Technical outlook
The USD/CHF daily chart shows the pair has a neutral bias, aiming towards the 50 and 100-daily moving averages (DMAs) confluence. After bouncing off an upslope trendline drawn
from January to May 2021 lows, which passes under the 0.9160 price level, the pair reclaimed the 0.9200 figure.
To the upside, the first ceiling level would be December 22, 2021, daily high at 0.9152, followed by December 7, 2021, cycle high at 0.9274, and then the 0.9300 figure.
On the flp side, the USD/CHF first support would be 0.9200. A breach of the latter would open the door for further losses, being the next support level the upslope trendline around 0.9160-75 area. A decisive break below that level would expose December 31 daily low at 0.9102.
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Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
