The USD/CHF price has tumbled to the lowest level since January 2015 as the overall sell-off of the dollar continues. The pair has already dropped by almost 10% this month and by more than 12% from the 2019 high. As of this writing, the USDCHF is trading at 0.8910 ahead of the NFP data.
Today, the biggest focus among traders will be the US nonfarm payroll numbers that will come out 13:30 GMT. In general, analysts believe that the numbers will show that the labour force continued to expand at a slower pace in November.
They see the economy adding more than 465k jobs in November with the private nonfarm payrolls expanding by more than 589k. Analysts also expect the unemployment rate to gradually decrease. Still, unless of a major upside or downside number, don’t expect any major movements on the USD/CHF price.
Meanwhile, investors are also focusing on any statement by the Swiss National Bank (SNB). In the past few years, the bank has lamented about the strength of the Swiss franc. Now, with the currency soaring against its peers, analysts are eager to see the bank’s actions. That’s because, in general, a stronger franc is usually a negative factor for the export-oriented Swiss economy.
On the weekly chart, we see that the USD/CHF has been in a strong downward trend. In the past few weeks, it has been forming a bearish consolidation pattern that is shown in green. This week, bears prevailed and it moved below the consolidation.
The downward trend is also being supported by all moving averages. Therefore, at this point, the path of least resistance for the USDCHF pair seems to be to the downside. If this is the case, the next key level to watch will be 0.8800.
