USD/CHF is expected to trade with bullish bias. The pair broke above 50-period moving average, which acts as a support now, and is holding on the upside. The relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. The U.S. Labor Department reported that non-farm payrolls gained 255,000 in July (vs. +179,000 expected, upwardly revised +292,000 in June). The jobless rate remained unchanged at 4.9% (vs. 4.8% expected), and the average hourly earnings increased 0.3% on month and 2.6% on year.
U.S. government bond prices fell across the board with the benchmark 10-year U.S. Treasury yield shooting up to 1.583% from 1.503% Thursday. Gold dropped 1.9% to $1,335 an ounce, the biggest fall in nearly three months, and silver plunged 3.1% to $19.66 an ounce, the largest loss in over four months.
Additionally, 0.9720 (August 4 bottom) represents a significant support level, which should limit the downside potential. As long as this key level is not broken, look for further upside toward 0.9875. A break above this level would open the way to further upside toward the next resistance at 0.99055.
Resistance levels: 0.9875, 0.9905, 0.9985
Support levels: 0.9720, 0.9670, 0.9630
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/CHF is expected to trade with bullish bias. The pair broke above 50-period moving average, which acts as a support now, and is holding on the upside. The relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. The U.S. Labor Department reported that non-farm payrolls gained 255,000 in July (vs. +179,000 expected, upwardly revised +292,000 in June). The jobless rate remained unchanged at 4.9% (vs. 4.8% expected), and the average hourly earnings increased 0.3% on month and 2.6% on year.
U.S. government bond prices fell across the board with the benchmark 10-year U.S. Treasury yield shooting up to 1.583% from 1.503% Thursday. Gold dropped 1.9% to $1,335 an ounce, the biggest fall in nearly three months, and silver plunged 3.1% to $19.66 an ounce, the largest loss in over four months.
Additionally, 0.9720 (August 4 bottom) represents a significant support level, which should limit the downside potential. As long as this key level is not broken, look for further upside toward 0.9875. A break above this level would open the way to further upside toward the next resistance at 0.99055.
Resistance levels: 0.9875, 0.9905, 0.9985
Support levels: 0.9720, 0.9670, 0.9630
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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