FxWirePro- USDCHF Trade Idea
The pair pared some of its gains on board-based US dollar weakness. Overall bias remains bearish as long as resistance 0.8900 holds. It hits a low of 0.87745 and is currently trading around 0.87875
In November 2024, the U.S. added 227,000 jobs, much more than the expected 202,000, showing a strong job market after a weak October. The unemployment rate stayed steady at 4.2%, but there was a drop of 355,000 full-time jobs. Private sector jobs rose by 194,000, with strong growth in leisure and hospitality. Wages increased by 0.4% compared to last month, indicating stable earnings.
On December 4, 2024, key U.S. economic reports showed mixed results. The ADP Employment Report revealed that the private sector added 146,000 jobs in November, missing expectations of 152,000 and down from 233,000 in October. The ISM Services Index fell to 52.1, lower than the expected 55.7, indicating slower growth in the services sector. Overall, these reports suggest a slowdown in job creation and service industry activity as the economy adjusts.
For the week ending November 30, 2024, initial jobless claims in the U.S. rose by 9,000 to 224,000, higher than the forecast of 215,000. The four-week moving average also increased to 218,250. Despite this rise, the job market remains strong with low layoffs, although some workers are experiencing longer-term unemployment, as shown by a decrease in continuing claims to about 1.871 million. Overall, the labor market is adjusting to various economic pressures.
.Technical Analysis
The pair is currently trading below the 34- and above 55-EMA on the 4-hour chart.
Near-Term Resistance: Current resistance is at 0.8835. A break above this level could lead to targets at 0.8880/0.8900/0.8960/ 0.9000/0.90480. The break above 0.87500 confirms that the decline from 0.9225 was completed at 0.83750.
Immediate Support: The next support level is at 0.8750. If this level is broken, the pair could drop to 0.8720/0.8700/0.8660/0.8600/0.8580, 0.8550, 0.8525, 0.8499, 0.8440, 0.8420, 0.8390, 0.8365 (61.8% Fibonacci projection), or even 0.8340.
Indicator Analysis (4-hour chart)
- CCI (50): Bearish
- Average Directional Movement Index: bearish
Overall, the trend remains weak
Trading Recommendation
Consider sell on rallies around 0.8800, with a stop loss set at 0.8860 and aiming for a target price of 0.8680.
