• US Dollar Index recovers a small part of this week's losses.
  • Wall Street looks to open the day flat.

After losing nearly 100 pips from the weekly opening level, the USD/CHF found support near 1.0030 on Thursday and is now moving sideways in a tight range in the lower half of its weekly range. As of writing, the pair was virtually unchanged on the day at 1.0040.

With the 10-year US T-bond yield rebounding for the second straight day on Thursday and the greenback reversed its course and the US Dollar Index, which closed every single day in the negative territory since last Friday's disappointing NFP reading, is now up 0.26% on a daily basis at 96.72. The data from the U.S. today showed that weekly initial jobless claims increased by 6,000 to 229,000 in the week ending March 9 and import prices rose 0.6% on a monthly basis in February.

Meanwhile, the S&P 500 Futures is trading flat on the day, suggesting that Wall Street is likely to open the day in a calm manner. However, with latest headlines suggesting that the U.S. could postpone the meeting between President Trump and President Xi to late April could hurt the stock markets and trigger a flight-to-safety to help the safe-havens gather strength in the second half of the day.

Technical levels to consider

USD/CHF

Trends:
Daily SMA20: 1.0033
Daily SMA50: 0.9973
Daily SMA100: 0.997
Daily SMA200: 0.9918
Levels:
Previous Daily High: 1.0085
Previous Daily Low: 1.0026
Previous Weekly High: 1.0125
Previous Weekly Low: 0.9977
Previous Monthly High: 1.01
Previous Monthly Low: 0.9921
Daily Fibonacci 38.2%: 1.0049
Daily Fibonacci 61.8%: 1.0062
Daily Pivot Point S1: 1.0015
Daily Pivot Point S2: 0.9991
Daily Pivot Point S3: 0.9956
Daily Pivot Point R1: 1.0074
Daily Pivot Point R2: 1.0109
Daily Pivot Point R3: 1.0133

"In the week ending March 9, the advance figure for seasonally adjusted initial claims was 229,000, an increase of 6,000 from the previous week's unrevised level of 223,000," the U.S. Department of Labor announced on Thursday.

Key takeaways from the press release

  • The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending March 2, unchanged from the previous week's unrevised rate.
  • The 4-week moving average was 223,750, a decrease of 2,500 from the previous week's unrevised average of 226,250.
  • The advance number for seasonally adjusted insured unemployment during the week ending March 2 was 1,776,000, an increase of 18,000 from the previous week's revised level.