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This pair is testing a key support level ahead of leading U.S. jobs data.

Will buyers step up and spur a bounce for USD/CHF?

Before moving on, ICYMI, yesterday’s watchlist checked out a potential breakout after the weekend gap on AUD/CHF. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

No progress reported on Russia-Ukraine peace negotiations

U.S. officials wary of escalated violence from Putin

Russia calls U.S. declaration of 12 Russian diplomats as persona non grata a hostile attack

Australian AIG manufacturing index up from 48.4 to 53.2

Japanese final manufacturing PMI downgraded from 52.9 to 52.7

Chinese official manufacturing PMI up from 50.1 to 50.2 vs. 49.9 consensus

Chinese official non-manufacturing PMI rose from 51.1 to 51.6 vs. 50.6 forecast

RBA kept interest rates on hold at 0.10% as expected

RBA: Australian economy resilient, spending picking up after Omicron setback

RBA officials note that war in Ukraine is a new source of uncertainty

Asian markets hold steady as investors await more headlines from Ukraine

Spanish manufacturing PMI up from 56.2 to 56.9 vs. 55.9 forecast

Swiss manufacturing PMI down from 63.8 to 62.6 vs. 64.2 consensus

U.K. final manufacturing PMI upgraded from 57.3 to 58.0 in Feb

Upcoming Potential Catalysts on the Forex Economic Calendar:

Canadian GDP at 1:30 pm GMT
U.S. ISM manufacturing PMI at 3:00 pm GMT
New Zealand GDT auction coming up
BOE MPC member Saunders’ speech at 6:30 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: USD/CHF

USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

Don’t look now, but USD/CHF is sitting right on the bottom of its range visible on the short-term time frames!

A bounce could take the pair back up to the top around .9285 or at least until the area of interest around the middle. After all, technical indicators are suggesting that buyers could defend the floor.

For one, the 100 SMA is above the 200 SMA to signal that the path of least resistance is to the upside. Stochastic is heading up, so price could follow suit until overbought conditions are met.

A breakdown below support, on the other hand, could set off a drop that’s the same height as the range or roughly a hundred pips.

This could hinge on the outcome of the U.S. ISM manufacturing PMI, which is slated to show a faster pace of expansion in the industry. Traders could zoom in on the jobs component, which would be a leading indicator for the NFP due on Friday.

Strong data might be enough to assure dollar bulls that the Fed could stay on track towards hiking rates soon while a downside surprise could dash hopes of seeing tightening moves before June.

As always, do keep tabs on headlines from Russia and Ukraine since these could impact market sentiment and demand for safe-havens!