USD/CHF is expected to trade with bullish outlook. Although the pair posted a pullback from 1.0025 (the high of November 3), a support base at 0.9975 has been formed and has allowed for a temporary stabilization. The relative strength index is mixed with bullish bias.
The US Labor Department reported that the economy added 261,000 nonfarm payrolls in October, compared with an addition of 315,000 jobs expected. The jobless rate declined 0.1 percentage point to 4.1%, its lowest level since December 2000. Meanwhile, wages increased 2.4% on year, the weakest pace of growth since February 2016.
In addition, the Institute for Supply Management said its non-manufacturing purchasing managers' index reached 60.1 in October, its highest level since 2005. The Commerce Department reported that factory orders increased 1.4% on month in September, and durable goods orders rose 2.0% on month, compared with a 2.2% gain estimated previously.
To conclude, as long as 0.9975 holds on the downside, a further upside to 1.0040 and even to 1.0060 seems more likely to occur.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: BUY, Stop Loss: 0.9975, Take Profit: 1.0040
Resistance levels: 1.0040, 1.0060, and 1.0100
Support levels: 0.9945, 0.9900, and 0.9860
The material has been provided by InstaForex Company - www.instaforex.com
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