According to economic news, Switzerland’s seasonally adjusted unemployment rate unexpectedly lowered to a rate of 2.4% in November, touching its lowest level since May 2002. The unemployment rate was at 2.5% in the prior month. Meanwhile, the nation’s total on-demand deposits remained steady at a level of CHF 576.9 billion in the week ended 07 December.
With no macroeconomic releases in Switzerland today, investors would look forward to global macroeconomic releases for further directions.
The US Dollar followed a bearish path recently after it failed to break the 0.9940 resistance area against the Swiss Franc. The USD/CHF pair declined and broke the 0.9920 and 0.9900 support levels to enter a bearish zone.
It traded as low as 0.9868 and it recently corrected higher. It moved above 0.9880 and tested the 50% Fib retracement level of the recent decline from the 0.9942 high to 0.9868 low.
However, there are many hurdles formed near 0.9900, 0.9905 and the 50 hourly simple moving average. Moreover, there is a crucial bearish trend line formed with resistance at 0.9910 on the hourly chart.
Therefore, as long as the pair is trading below the 0.9905-10 resistance zone, there are chances of more losses. On the downside, the key supports are at 0.9975 and 0.9960, followed by 0.9950.