Overview: – Well the pair is trading at fresh 2020 highs above 0.9770 level ahead of NFP. The USD/CHF pair closed the last four trading days in the positive territory and continued to edge higher on Friday to touch its best level since December 27th at 0.9772. As of writing, the pair was up 0.2% on the day at 0.9770.
Well earlier pair is falling down consistently from last couple of weeks and it slipped from 1.0002 and it marked a low of 0.9612 level. We can see the bearish sentiments are over now and bulls got the charge and snatched the bite from bear’s mouth and pair is heading towards north side. Well the way bulls are reacting it seems like they are approaching the 0.9900 level once again in near term. Overall bulls are leading and taking the charge with full of bullish momentum or we can say that bulls are driving the car and heading towards north side.
Fundamental Analysis:- On the other hand, the broad-based USD strength it providing an additional boost to the pair. Ahead of the closely-watched Nonfarm Payrolls (NFP) report, the US Dollar Index is (DXY) staying at its highest level since early December near 98.60. The upbeat data from the US and the selling pressure surrounding major European currencies helped the greenback find demand throughout the week.
The sour market mood fails to help the CHF find demand as a safe-haven after the Swiss National Bank made it clear that it was ready to cut its policy rate further and intervene in the FX markets if needed to curb the CHF’s value.
Technical Analysis:- From technical prospective we can see that a downtrend line has been breached out successfully by bulls. Even we can say that pair has been bottomed out on the daily chart. It’s an early buy call we will get further bullish confirmation once we see a daily closing above 0.9800 level. A valid breakout of 0.9800 level will open the way towards the 0.9850 and 0.9900 level in coming days.
Pair is trading above all the major and minor EMA lines sustaining above the lines. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 0.9660 levels remains intact. RSI has entered in the positive territory so we may see some buying. A bullish crossover on the MACD indicator occurred which indicates that now bulls will play at the front foot again and will dominate the bears.
What next :- The 0.9850 is key resistance level followed by 0.9900 level whereas 0.9725 level which is a key support level followed by 0.9700 level.
Trade idea:- Based on the chart and study above we can suggest go for buy at current levels 0.9775-70 for the target of 0.9850 and 0.9900 stop loss is 0.9720.
