7 Jun 2013
USD/CHF jumps higher after NFP’s
FXstreet.com (London) - The USD/CHF has gapped up to trade 1 big figure higher after the release of NFPs which came out pretty much in line with expectations, albeit slightly higher against the consensus as 175k vrs 170k and better than the previous 165k of last month.
USD/CHF rally maybe short lived
However, on the flip side, and noting how gaps in the charts tend to get filled again, especially looking back across the price action in the pair before this benign NFP’s number, USD/CHF had previously severed its 2011-2013 support line. “This leaves it vulnerable to further losses to 0.92065, April low and potentially to 0.9023, the 2013 low. We note the Fibonacci retracement at 0.9198 and suspect that the 0.9206/0.9198 support will hold the initial test,” said analyst Karen Jones for Commerzbank. The pair are currently capped at resistance and yesterdays drop zone between 0.9340/60.
USD/CHF rally maybe short lived
However, on the flip side, and noting how gaps in the charts tend to get filled again, especially looking back across the price action in the pair before this benign NFP’s number, USD/CHF had previously severed its 2011-2013 support line. “This leaves it vulnerable to further losses to 0.92065, April low and potentially to 0.9023, the 2013 low. We note the Fibonacci retracement at 0.9198 and suspect that the 0.9206/0.9198 support will hold the initial test,” said analyst Karen Jones for Commerzbank. The pair are currently capped at resistance and yesterdays drop zone between 0.9340/60.