USD/CHF: 0.9550 resistance holds firm as US average earnings disappoint

• NFP 313k vs 200k but average earnings disappoints.
• USD/CHF retreats from 0.9550 resistance.

The USD/CHF is trading around 0.95040 virtually unchanged on the day amid the US employment numbers. 

The US NFP came in above expectation at 313K jobs during February versus 200K and up from January's 239K (revised from 200K). Unemployment disappointed at 4.1% vs.4.0% expected.

This month Average Hourly Earnings were the central focus of the market. They came in at 2.6% y/y vs. 2.8% expected.

The USD had an initial boost against most major currencies before seeing a sharp pullback. The Dollar index rose to 90.36 and is now trading lower around 90.20. 

USD/CHF daily chart

The pair is trading at the top of a bull channel and today seems to be shaping up to become a potential reversal day. Thursday was quite an exceptional bullish day which can be seen as exhaustion especially when it happens in the higher part of the bull channel. 

USD/CHF 4-hour chart

The first support is 0.9450 at the 23% Fibonacci retracement, followed by the 0.9400 level at the 38.2 Fibonacci retracement. Strong support is seen at the 50% Fibonacci retracement with the 100 and 200-period moving averages and the trendline. The RSI is coming off the overbought territory after posting a bearish divergence with the prior high. 

To the upside resistance is seen at 0.9550 which is close to the high of Friday so far, followed by 0.9700 which is a former demand/supply zone.