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Aayush Jindal

Key Highlights

  • USD/CHF recovered above 0.9100, but it is facing hurdles near 0.9160 and 0.9175.
  • A major bearish trend line is forming with resistance near 0.9160 on the 4-hours chart.
  • GBP/USD recovered sharply above 1.3000 after testing the 1.2880 support.
  • The US Initial Jobless Claims are likely to slide from 840K to 825K in the week ending Oct 10, 2020.

USD/CHF Technical Analysis

In the past few days, there was a steady decline in the US Dollar from 0.9300 against the Swiss Franc. USD/CHF traded as low as 0.9086 and recently started an upside correction.

Looking at the daily chart, the pair recovered above the 0.9120 and 0.9140 resistance levels. However, the pair is facing a strong selling interest near the 0.9160 level and it struggled to stay above the 200 simple moving average (green, 4-hours).

There is also a major bearish trend line forming with resistance near 0.9160. The next major resistance is near the 0.9175 level and the 100 simple moving average (red, 4-hours). The pair is clearly struggling to settle above 0.9160 and 0.9175.

A successful close above the 0.9175 level is needed to start a strong increase towards the 0.9200 and 0.9220 levels. Conversely, the pair could resume its decline below the 0.9100 support level. The next major support is near the 0.9085 level, below which USD/CHF might revisit the 0.9050 support.

Looking at GBP/USD, the pair found a strong buying interest near 1.2850. There was a sharp upward move above the 1.2920 and 1.3000 resistance levels. Conversely, EUR/USD is struggling to recover above the 1.1780 and 1.1800 resistance levels.

Upcoming Economic Releases

  • US Initial Jobless Claims - Forecast 825K, versus 840K previous.
  • US Import Price Index March 2020 (MoM) – Forecast +0.4%, versus +0.5% previous.
  • US Export Price Index March 2020 (MoM) – Forecast -1.0%, versus -2.8% previous.