USD/CHF rallies on stronger greenback ahead of nonfarm payrolls Friday

USD/CHF has rallied on the back of a strong greenback from 0.9649 and reached a high of 97.33 and through the 100 sma on the 1hr sticks.

USD/CHF the ISM service sector remaining resilient, albeit missing expectations, an ADP report that was somewhat supportive to a stable nonfarm payrolls result, hawkish Fed speakers this week.

Nonfarm payrolls outlook

Analysts at ING offered their forcasts: "Just a blip? After recent volatile jobs numbers, we look for a return closer to trend. Last month's bumper 265k non-farm payrolls (NFP) figure underscored Chair Yellen's (and our own) view that the dip in employment growth during April/May was just a blip. The reason for this weakness is hard to isolate, although may be at least partially explained by weak investment in the first quarter (which persisted into the second quarter according to GDP data). Volatile data makes the underlying NFP trend tricky to gauge, but we think a return to 160-190k would be trend-consistent. That said, a 120k-plus figure is sufficient, given that job creation is slowing as the final labour market slack erodes."

USD/CHF levels

Current price is 0.9734, with resistance ahead at 0.9740 (Daily High), 0.9754 (Daily Classic R3), 0.9760 (Weekly Classic PP), 0.9787 (Daily 20 SMA) and 0.9794 (Hourly 200 SMA).Next support to the downside can be found at 0.9732 (Daily 100 SMA), 0.9728 (Daily Classic R2), 0.9706 (Hourly 100 SMA), 0.9702 (Yesterday's High) and 0.9688 (Hourly 20 EMA). Looking at price patterns, we can see a Piercing Line and Engulfing Bullish 1-hour candlestick formation.