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USD/CHF tumbles on softer US jobs and wage data

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A wrath of US economic data painted the picture that US economy is slowing, propping up expectations that Fed will dial back their rate hike expectations at the December 19th meeting.  The headline nonfarm payroll printed 155,000 jobs, a miss from the 200,000 level that analysts’ eyed.  The unemployment rate stayed steady at 3.7%, matching the lowest level since 1969.  The wage data came in softer than expectations and the back month was revised lower, thus provided a little relief for inflation concerns.  The November monthly average hourly earnings miss by one-tenth of percentage point at 0.2%, while the annual reading came in line with expectations at 3.1%

Price action on the USD/CHF was initially lower after the softer than expected US economic data.  The initial selloff approached the lows of the week but since has rebounded to little changed on the session.   Key resistance remains the 0.9970 to parity region.  If we see a resumption of the downward move that has been in place since the middle of November, price could initially target 0.9888.  Major resistance would come from 0.9842, which is both where the 200-day SMA trades and where we could see the beginning of a bullish Gartley pattern.  If the bullish reversal is valid we could see price a move back towards the parity level.

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
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