USD / CHF finds support at 0.9260 after rejection at 0.9300

• The dollar fails to break 0.9300 but remains stable above 0.9260.
• The pair extended losses following the release of the NFP data.
• USD / CHF: A dip below 0.9189 would ease upward pressure – Commerzbank.

The US dollar has failed in its third attempt to regain the 0.9300 level, and is down earlier today, to extend losses following the release of a disappointing US Non-Farm Payroll report. USD/CHFHowever, it has found support at 0.9260, before climbing towards the 0.9275 area in the last US session.

Dollar cuts earnings after weak jobs report

The dollar suffered after the release of the September employment figures. Nonfarm payrolls increased by 194,000 versus market expectations of nearly 500,000 new jobs, while the August reading was revised up to 366,000 from a previously estimated 235,000 increase.

These figures affected the strength of the USD initially, although the negative impact only lasted until investors accepted the fact that this would change the Federal Reserve’s plan to start reducing its monetary stimulus measures in the coming months. Fed Chairman Jerome Powell said last month that a “decent” jobs report in September would be enough to start reducing bond purchases.

USD / CHF: A dip below 0.9189 would mitigate upward pressure – Commerzbank

According to Karen Jones, director of technical analysis for FICC at Commerzbank, the risk remains biased to the upside, while above 0.9189: “The USD / CHF failed last week in the 78.6% retracement at .9357, but up to now it is held in the short term. uptrend at .9222. Intraday Elliott wave counts are negative and focus remains on the near uptrend and the 55-day ma at .9189. Failure is necessary here to relieve upward pressure. “

Technical levels