USD/CHF plunges below 0.9100 on US Dollar pullback post hot US NFP data

• USD/CHF spirals to a weekly low of 0.9074, even as US hiring surges to a robust 336K.
• Greenback’s rally falters, with the DXY index retracting 0.34%, slipping back beneath the pivotal 106.00.
• Market eyes on Fed officials, upcoming meeting minutes, and crucial inflation data to discern future USD/CHF dynamics.

The Swiss Franc (CHF) extended its gains versus the US Dollar (USD) as the pair dropped past the 0.9100 figure, which briefly halted the downward pullback, but selling pressure outpaced buyers struggling to cap the downtrend. The USD/CHF is trading at around 0.9080s, hitting a new weekly low of 0.9074.

Despite robust US Nonfarm Payrolls, USD/CHF slumped to a new weekly low

The US Department of Labor revealed the latest Nonfarm Payrolls report, which crushed forecasts as hiring in September rose by 336K, crushed the 170K, and exceeded the upward revised figures for August to 227 K. Digging a little deep into the data, Average Hourly Earnings aimed down from 4.3% to 4.2% below estimates, and the Unemployment Rate stood at 3.8%, unchanged from August.

Even though the data released lifted the USD/CHF toward a daily high of 0.9175, the major has reversed that leg-up and tumbled, as the Greenback rally was overextended. The US Dollar Index (DXY) , which measures the buck’s value against a basket of six currencies, drops 0.34%, below the 106.00 mark.

Meanwhile, market participants had increased the US Federal Reserve’s (Fed) odds for 25 bps for the December meeting, standing at 42.04% according to the CME FedWatch Tool.

For the next week, USD/CHF traders would take some clues from Federal Reserve officials, the Fed's last meeting minutes, and inflation data.

USD/CHF Price Analysis: Technical outlook

From a technical standpoint, the USD/CHF daily chart portrays the pair forming a ‘double-top’, confirmed by price action falling below the last cycle low of 0.9091. That said, the chart pattern price objective would be 0.8960, but on its way south, the major must reclaim the 200-day moving average (DMA) at 0.9025, followed by the 0.9000 mark.