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USDCHF Market Analysis

12/5/2022 11:06 AM

During the Asian session, the USD/CHF pair is moderately declining, testing 0.9350 for a breakdown.

The downward dynamics of the American currency returned after an unsuccessful attempt at corrective growth on Friday when investors reacted to the publication of a report on the national labor market for November: the increase in the number of new jobs amounted to 263.0K, much better than experts' expectations of 200.0K. The same indicator for October was revised from 261.0K to 264.0K, while the unemployment rate in November remained at the same level of 3.7%, and the average hourly wage increased from 0.5% to 0.6% MoM, contrary to forecasts of a slowdown to 0.3%, and from 4.9% to 5.1% YoY, ahead of expectations of 4.6%.

The focus of investors on Monday is statistics from the Institute of Supply Management (ISM) on Services PMI for November: current forecasts suggest a moderate increase in the indicator from 54.4 points to 55.6 points. The franc may react to EU retail sales data, which is expected to fall 0.6% after rising 0.4% in October.

On the daily chart, Bollinger bands reverse into a horizontal plane: the price range expands, indicating an increase in the "bearish" sentiment in the short term. The MACD indicator is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic keeps a confident downward direction but is close to its lows, indicating the risks of the US currency being oversold in the ultra-short term.

Resistance levels: 0.9400, 0.9478, 0.9550, 0.9600. | Support levels: 0.9350, 0.9300, 0.9200, 0.9100.

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