USD/CHF seeks second consecutive day of gains and approaches 0.8800

• The USD/CHF pair is rising to reach its second daily high, but momentum remains weak.
• The US dollar remains strongly sold against the Swiss franc.
• Economic calendar data leans heavily toward the US side this week, culminating in other NFP numbers.

He USD/CHF continues to rise for the second day in a row, with the US Dollar (USD) supported by broader market risk-averse flows, rather than any specific weakness in the Swiss Franc (CHF), which is up more than 3% against to the USD since the beginning of November.

The USD/CHF pair has been trading one-sided, closing flat or in the red for fifteen consecutive days before hitting a short-term low of 0.8666. On Tuesday, the US Dollar posted little gains, so the USD/CHF pair will close with consecutive significant gains since October.

U.S. JOLTS job postings in October missed market forecasts, falling to a two-and-a-half-year low of 8.733 million jobs, beating the forecast of 9.3 million, and declining further away from the forecast. September print of 9.35 million (revised slightly downward from 9.553 million).

The US labor market remains tense, making it difficult for the Federal Reserve (Fed) to accelerate the pace towards a rate cut cycle, and investors are watching market data in hopes of finding cracks in the overall data that signals Fed rate cuts sooner rather than later.

Markets are currently anticipating rate cuts from the Fed in the first half of next year, although still elevated economic indicators make it difficult for the Fed to realize the market’s hopes. On the downside, investors are walking a knife’s edge when it comes to data expectations: if US economic data turns too red, too fast, a full-blown recession would be terrible for investors. markets.

USD/CHF Technical Outlook

USD/CHF remains in the red in the medium term, despite intraday gains this week, and the US Dollar is lower against the Swiss Franc heading into 2023.

USD/CHF experienced an accelerated decline after falling through the 0.8900 zone in November, and the pair has continued to decline since then, losing another 200 pips to reach chart territory near the 0.8700 zone.

The 200-day SMA has steadily declined through the 0.9000 zone, while long-term momentum is leaning towards the bearish side of the dollar. The 50-day SMA is poised for a bearish crossover to the 200-day SMA after the shorter moving average failed to see a bullish shift materialize in the market following a brief bullish crossover in November.

USD/CHF Daily Chart

USD/CHF technical levels