USD/CHF has been quite volatile and corrective at the edge of 0.9850 area from where it is expected to climb higher in the coming days. Ahead of NFP reports today, USD is expected to assert strength against CHF.
USD has been weighed down by a dismal ISM Manufacturing PMI for December and initial umemployment claims. However, traders have optimistic expectations of NFP reports to be published today. Today US Average Hourly Earnings report is going to be published with an increase to 0.3% from the previous value of 0.2%, Non-Farm Employment Change is expected to increase to 179k from the previous figure of 155k, and Unemployment Rate is expected to be unchanged at 3.7%. Moreover, FED Chair Powell is going to speak today after the rate hike in December. Is he suggests a positive outlook on the domestic economy, his speech may encourage further gains on the USD side in the coming days. US Employment Change is more likely to rise higher to 177,000 from the previous figure of 155,000. If the forecasts come true, the upbeat reports will enable USD to gain momentum.
On the other hand, recently Switzerland's Manufacturing PMI report showed an uptick to 57.8 from the previous figure of 57.7 which was expected to decrease to 57.0. The positive reading provided some support to CHF but it did not manage to sustain momentum and dipped lower.
Meantime, amid optimistic expectations for the employment reports today, USD has already won interest of investors. Though CHF managed to gain certain momentum earlier, USD is currently expected to push higher against CHF in the coming days.
Now let us look at the technical view. The price has been quite corrective and volatile with the recent bearish momentum which pushed the price towards 0.9850 area. Recently the price also formed Bullish Divergence. Besides, a False Bearish Breakout indicates further upward momentum in the coming days. As the price remains above 0.9850 support area with a daily close, the bullish bias is expected to continue.
SUPPORT: 0.9750, 0.9850
RESISTANCE: 0.9950, 1.0050
BIAS: BULLISH
MOMENTUM: VOLATILE
