USDCHF Testing Ahead Of Labor Market Conditions Index
Aayush Jindal
Key Highlights
US dollar busted higher against the Swiss franc after positive job’s report this past week.
USDCHF is testing a key resistance area around 0.9880-0.9900.
US Labor market conditions index which is a primary source of common variation among 19 labor market indicators will be released today.
Japanese Gross Domestic Product was released by the Cabinet Office, which posted a gain of 0.4% in the fourth quarter of 2014, compared to the preceding quarter of 2014.
Japanese Trade Balance was also released by the Customs Office, which posted a deficit of ¥864.2B in January 2015, compared to the last deficit of ¥395.6B.
US Labor Market Conditions IndexLater during the NY session, the Labor market conditions index which represents a primary source of common variation among 19 labor market indicators will be released. The market is expecting a gain from the last reading of 4.9 in February 2015. Let us see how the outcome shapes up, as the recent economic releases point strength in the US Labor market.Moreover, in Switzerland the retail sales report will be released by the Swiss Federal Statistical Office. The last increase was of 2.2%. We need to see whether January’s reading stay above 2% or not. If outcome fails to match or degrades then the Swiss franc might come under pressure in the near term.Technical AnalysisThe USDCHF pair recently spiked higher towards the 0.9880 resistance area which represents a major barrier or the US dollar buyers. There is a bullish trend line formed on the 4 hour chart, which might act as a support to the pair if it moves lower from the current levels. The most important thing is that the 4-hour RSI is around the extreme levels, suggesting that there might be a pullback in the USDCHF pair.The pair is already seen struggling around the 0.9880 level, and it is quite possible that there could be selling interest seen near the mentioned level.Japanese GDP and Trade BalanceEarlier during the Asian session, there were a couple of releases lined up in Japan. The most important was the Gross Domestic Product, which was released by the Cabinet Office. The outcome was above the forecast, as Japan’s GDP rose by 0.4% in the fourth quarter of 2014, compared to the preceding quarter of 2014.
The pair is already seen struggling around the 0.9880 level, and it is quite possible that there could be selling interest seen near the mentioned level.Japanese GDP and Trade BalanceEarlier during the Asian session, there were a couple of releases lined up in Japan. The most important was the Gross Domestic Product, which was released by the Cabinet Office. The outcome was above the forecast, as Japan’s GDP rose by 0.4% in the fourth quarter of 2014, compared to the preceding quarter of 2014.
The pair is already seen struggling around the 0.9880 level, and it is quite possible that there could be selling interest seen near the mentioned level.Japanese GDP and Trade BalanceEarlier during the Asian session, there were a couple of releases lined up in Japan. The most important was the Gross Domestic Product, which was released by the Cabinet Office. The outcome was above the forecast, as Japan’s GDP rose by 0.4% in the fourth quarter of 2014, compared to the preceding quarter of 2014.