Fundamental Analysis of USD/CHF for October 6, 2017

USD/CHF has recently broken above the resistance level of 0.9770 which was an important level holding the price inside the corrective structure. Today, the trading day is going to be very volatile for the USD-based pairs as high impacts reports from the US are going to be published. Today, US Average Hourly Cash Earnings report is due which is expected to show an increase to 0.3% from the previous value of 0.1%, Non-Farm Employment Change report is expected to show a decrease to 82k from the previous figure of 156k, Unemployment Rate is expected to be unchanged at 4.4%, and FOMC Members Dudley and Kaplan are going to speak on the US key interest rate and future monetary policy. On the CHF side, today Foreign Currency Reserve is expected to show an increase from the previous figure of 717B, the report is expected to have a minor impact on the market as traders are more focused on US economic reports. To sum up, the market is going to trade with higher volatility. Besides, USD is expected to gain momentum against CHF which would lead to further gains on the USD side in the coming days.

Now let us look at the technical chart. The price is currently residing just above the corrective structure resistance of 0.9770 which was indeed a strong level to break above. The resistance level has already made the price bounce off it several times that leads to further bearish pressures. Recently the price has broken above it with a daily close which signals the strength of bulls now. As the price remains above the 0.9770 resistance level with a daily close, further bullish pressure towards 0.9860 is expected in the coming days. If the price breaks above the 0.9860 with a daily close, then we will consider 1.00 as our next take profit level.

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