- USD/CHF jumped more than 70 pips from the yesterday low of 0.98768 after positive U.S economic data. US jobless claim data declined for the third straight week. The number of people filed for unemployment benefits fall to 5- week low of 236000 and number of layoffs at lowest level till 1974.The pair hits high of 0.99668 at the time of writing and is currently trading around 0.99610.
- US economy is expected to add 195000 jobs in Nov compared to 261000 in previous month. Since ISM employment index which came at 59.7 from 59.8 points to slight weakness in manufacturing hiring.
- Technically pair is trading well above short term (20- day MA and 50 –day MA) and long term (100 and 200 day) MA. The near term resistance is around 1.000 and any break above will take the pair to next level till 1.00380. Short term trend reversal only above 1.0040.
- On the lower side, near term support is around 0.9886 (daily Kijun-Sen) and any break below will drag the pair to next level till 0.9862 (50- day MA)/0.9805 (200- day EMA)/0.97720. It should break below 0.9705 for further weakness.
It is good to buy on dips around 0.9935-40 with SL around 0.9880 for the TP of 1.000/1.0038.
