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Instrument: USDCHF
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 0.95396 with take profit at 0.95601
Bearish Preference:
Sell position is envisaged if price trades below 0.95019 with take profit at 0.94820
Fundamentals:
3:00pm USD JOLTS Job Openings
Comment:
USD/CHF bears take a breather after declining to the lowest levels in 14 weeks the previous day, marking the five-day downtrend. That said, the Swiss currency (CHF) pair recently seesaws around 0.9500 as traders await fresh clues as the Swiss traders return from the holiday on Tuesday. The USD/CHF pair’s recent losses could be linked to the US dollar’s broad weakness amid fears of the “technical recession” and anxiety ahead of Friday’s Nonfarm Payrolls (NFP). However, due to the expected US-China tussles, the recent shift in the market sentiment appeared to have put a floor under the prices. US Dollar Index (DXY) refreshed its monthly low before bouncing off 105.25 on Monday, as fears of economic slowdown joined Fed Chair Jerome Powell’s indirect signals that the hawks are running out of steam. Even so, disappointing statistics from the US and Europe and the Sino-American tensions might have probed the greenback bears of late. US ISM Manufacturing PMI dropped to the lowest since 2020 in July as the activity gauge fell to 52.8 versus 53.0 prior. However, the actual figures were better than the 52.0 market forecast. Also, final readings of the US S&P Manufacturing PMI eased below 52.3 initial estimates to 52.2, compared to 52.7 prior. Furthermore, Germany’s Retail Sales dropped 8.8% YoY in June versus -8.0% market consensus and -3.6% prior.
Analysis: SCRUM Team
