May. 7, 2021
After starting the day at 0.9075 USD/CHF dropped to 0.9002, hitting its lowest point in 2 months, it later recovered 12 pips and is now trading at 0.9015 (Start trading Dollar/Swiss at FXTM today).
Nonetheless, encouraging indicators for Dollar/Swiss published earlier when United States Non Farm Payrolls published today at 12:30 PM came out at 266,000, falling short of the 978,000 projections and continuing its decline from the previous 770,000 figure. The United States Unemployment Rate fell short of the 5.8 projections, at 6.1 and continued its downward trajectory from the previous figure of six.
Meanwhile, Switzerland Unemployment Rate s.a. (Apr) published today at 5:45 AM came out at 3.1, falling short of the 3.3 projections and continuing its decline from the previous 3.3 figure.
As the day reaches an end, a chart visual study suggests the Swiss franc resistance level is at 0.9475. In terms of trend indicators, we can see that the CCI indicator is below -100. When the CCI (Commodity Channel Index) is at this level, it means the price is below the average price as measured by the indicator, indicating a possible start of a new downtrend. Asset volatility analysis shows that the Swiss franc has just crossed the lower Bollinger band at 0.9047, indicating further loses might be next On the other hand, note that the Relative Strength Index has gone below 30, going into oversold conditions and allowing more gains.
Overall, looking at the technical analysis landscape – although indicators are mixed and some are pointing in different directions, it seems further drawbacks may be next for the Swiss Franc
In the meantime, negative performances are also seen in other symbols, Singapore Dollar dropped by 0.61%, its largest single-day drop since May 2020. EUR/CAD hits a 1 year low, as it drops to 1.4649
However, positive performance can be seen looking at other symbols, as the S&P 500 ascends to 4,236, its highest rate ever. The Euro is up by 102 pips(0.85%), making it its largest single-day gain since December 2020.