![\"USDCHF](\"http:\/\/www.laidtrades.com\/wp-content\/uploads\/2010\/06\/062910usdchf.png\")
<\/p>\n<\/p>\n
Good day forex peeps! Here\u2019s an update on the USDCHF<\/a> which I published back on June 21 (kindly check my previous post here<\/a>). As you can see from its chart, the pair has continued to drop and has even slipped past the 61.8% Fibonacci retracement level that I drew. Now, the only obvious support that is preventing it from declining further is the neckline of the former inverted head and shoulders pattern. With the stochastics in the oversold region, the US dollar could soon again take the driver seat away from the Swiss franc. Though, it is also possible that the pair would trade sideways for awhile before moving higher. Once it does, it could aim for its recent high at 1.1731. On the negative side, if and when the 1.0800 support and the former neckline give way, the Swissy could further trump the greenback and the pair could fall and revisit its previous low at 1.0435.<\/p>\n On the fundamental side, the Swissy\u2019s gain was mostly due when the Swiss National Bank stated that the risk of deflation in the country is fading away. The bank\u2019s statements then sparked some speculations that it would refrain from meddling in the market to purposely weaken the CHF.<\/p>\n For this week, though, the market will focus on the release of the grand daddy of economic reports, the US\u2019s NFP report. For the month of June, US firms are sen to have slashed about 103,000. This marks the first job decline in the Us four months. Such drop would reflect to an uptick in the country\u2019s unemployment rate to 9.8% from 9.7%. Now, consumption takes up about 70% of the US total output. With declining jobs, naturally, the people\u2019s aggregate spending would dip as well because of their lesser total income. This scenario could then fuel some risk aversion in the markets, which could consequently lead to an increase in the safer assets like the USD.<\/p>\n