USDCHF trades higher on board-based US dollar buying. It hits an intraday high of 0.79663 and is currently trading around 0.79636.
Surpassing expectations, US initial jobless claims fell dramatically by 33,000 to 231,000 on September 18, 2025, the biggest weekly drop in almost four years. indicating a strong labor market with low layoffs; continuing claims dropped marginally to 1.920 million. Driven by robust new orders (+12.4) and shipments (+31.0), the Philly Fed Manufacturing Index soared to +23.2 in September—the highest since January—flipping from contraction to expansion and surpassing predictions. These data points underline economic resilience, thus justifying the Fed's most recent rate cut and boosting hopes for a soft landing, with investors now concentrating on forthcoming PMI and employment statistics.
Technical Analysis Points to Further Weakness
The pair is trading below 55-EMA, the 200 EMA, and 365 EMA on the 1-hour chart, indicating a weak trend. The immediate resistance is at 0.7980; any break above targets 0.8000/0.8070/0.8090/0.8135/0.8170/0.8215/0.8250.
Support Levels and Potential Declines
On the downside, near-term support is around 0.7920; any violation below will drag the pair to 0.7900/0.7860/0.7800.
Indicators (1-hour chart)
CCI (50) - Bullish
Directional Movement Index - Bullish
Trading Strategy Recommendation
It is good to sell on rallies around 0.7968-70 with SL around 0.8010 for a TP of 0.7860.
