Key Highlights
- The US Dollar started a strong recovery from the 0.9696 low against the Swiss Franc.
- USD/CHF traded above a bearish trend line with resistance near 0.9790 on the 4-hours chart.
- The ISM-NY Business Conditions Index in June 2019 increased from 48.6 to 50.0.
- The US ADP Employment figure could change 140K in June 2019, up from the last 27K.
USDCHF Technical Analysis
After a strong decline, the US Dollar found support near 0.9700 against the Swiss Franc. The USD/CHF pair traded as low as 0.9696 and recently started a strong recovery above 0.9750.
Looking at the 4-hours chart, the pair gained bullish momentum in the past seven days and broke a few important resistances near the 0.9720, 0.9750 and 0.9800 levels.
During the rise, the pair traded above a bearish trend line with resistance near 0.9790 on the same chart. Besides, there was a break above the 0.9840 pivot level plus the 50% Fib retracement level of the last major decline from the 1.0014 high to 0.9696 low.
The pair even surpassed the 0.9880 level and the 100 simple moving average (red, 4-hours). On the upside, the next key resistance is near the 0.9940 level plus the 200 simple moving average (green, 4-hours).
Moreover, the 76.4% Fib retracement level of the last major decline from the 1.0014 high to 0.9696 low is near 0.9939. If the pair clears the 0.9940 resistance, it could extend its recovery towards the parity level (1.0000).
On the downside, an immediate support is near the 0.9850 and 0.9840 levels, below which the pair could correct towards the 0.9800 support area.
Looking at EUR/USD and GBP/USD, there was a downside correction, but both pairs are now approaching a few key supports.
Economic Releases to Watch Today
- Germany’s Services PMI for June 2019 – Forecast 55.6, versus 55.6 previous.
- Euro Zone Services PMI for June 2019 – Forecast 53.4, versus 53.4 previous.
- UK Services PMI for June 2019 – Forecast 51.0, versus 51.0 previous.
- US ADP Employment Change June 2019 – Forecast 140K, versus 27K previous.
- US Initial Jobless Claims – Forecast 223K, versus 227K previous.
- US Services PMI for June 2019 – Forecast 50.5, versus 50.7 previous.
- US ISM Non-Manufacturing Index for June 2019 – Forecast 55.9, versus 56.9 previous.
