USD/CHF hits four-day lows under 0.8700 after NFP

USD/CHF hits four-day lows under 0.8700 after NFP

US Dollar weakens across the board after NFP. 
Nonfarm Payrolls rise by 187,000 in July, below the 200,000 of market consensus. 
USD/CHF falls for the second day in a row, still up for the week. 

The USD/CHF reached a four-day low at 0.8699 on Friday, following the release of US jobs data. The pair is trading around 0.8705, retreating from weekly highs on the back of a weaker US Dollar across the board. 

US data does not lift the Dollar

The Greenback is experiencing a decline on Friday following the release of the July employment report. Nonfarm Payrolls increased by 187,000, falling short of the market consensus of 200,000. However, the Unemployment Rate dropped from 3.6% to 3.5%. Additionally, Average Hourly Earnings rose by 4.4% compared to a year ago, surpassing the market consensus of 4.2%. Analysts at Wells Fargo noted that the slower pace of hiring in July indicates a gradual cooling of the labor market. 

The US Dollar weakened and is falling against various currencies. In contrast, Wall Street is experiencing a rise. The decline in US Treasury bond yields is putting pressure on the DXY, which is losing 0.60%, trading under 102.00.

Looking at 0.8700

The USD/CHF is currently testing the support area at 0.8700, declining for the second consecutive day. If the pair falls below that area, attention would shift to the 20-day Simple Moving Average (SMA) at 0.8680. The momentum currently favors the downside. This decline is occurring after the US Dollar was rejected from levels above 0.8800.

On the upside, immediate resistance is seen at 0.8730. For the US Dollar to regain strength, it would need to reclaim the level of 0.8780, which could potentially lead to another test above 0.8800.

Technical levels 

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