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USDCHF: Reaching for year highs

Traders exercised caution ahead of the highly anticipated Friday’s nonfarm payrolls report. Economists were expecting for the jobless rate to remain at 6.1%, and for a 230,000 increase in jobs but the actual stand at 6.2% and 209,000 all worse than expected.

The US employment data was disappointing. The short-term market had been leaning the wrong way. The recent data had blown hopes that the labor market was accelerating, but Friday’s data suggest the pace of improvement has not changed.

The disappointment initially drove the dollar down across the board. It has found some traction in choppy trading.

Expecting downward move to 0.8952 on a break of below Friday’s low at 0.9040 (scenario 1) or a break above Friday’s high at 0.9096 could throw price to year high at 0.9156 (scenario 2).