USDCHF breaks out. The pair surges outside the “Red Box” after stronger US jobs report

The US jobs report has sent the USDCHF, finally outside of the up and down trading range that has mostly confined the pair between 0.8399 and 0.85368. The price was trading near 0.85166 ahead of the report, and has now surged up to 0.8607. At the high, the price has tested the 61.8% retracement of the move down from the mid-August high. That level comes in at 0.86049.

The price has since rotated back down toward 0.8587. The 50% midpoint of that same move lower (from mid-AUgust high) comes in at 0.85608 and will now be a support target on the downside. Stay above and the buyers remain in firm controla after the breakout.

On the daily chart, a swing area hi comes in at 0.8580. That level will now be a close support level as well. If the price can hold above that level, a continuation move to the upside and a retest of the 61.8% retracement level target would be expected.

This article was written by Greg Michalowski at www.forexlive.com.