The USD remains under pressure

The USD remains under pressure, We focus in on one major pair.

Charts (3)

The USD remains under pressure

The US Dollar was bearish against most of its major pairs on Wednesday with the exception of the GBP. On the economic data front, the Mortgage Bankers Association's Mortgage Applications fell 2.6% for the week ending May 15th, from 0.3% in the prior week. The Federal Open Market Committee (FOMC) released the April 29th Meeting Minutes, which stated that financial markets had shown improvement as a result of the actions taken by the Fed, strong fiscal measures and indications that the coronavirus spread was slowing. The Fed went on to say that the economic outlook is still uncertain due to the lagging affects of the coronavirus on the global economy. 

On Thursday, Initial Jobless Claims for the week ending May 16th are expected to decline to 2,400K, from 2,981K in the week before. Continuing Claims for the week ending May 9th are expected to rise to 23,500K, from 22,833K in the previous week. Markit's US Manufacturing Purchasing Mangers' Index for the May preliminary reading is expected to rise to 39.5 on month, from 36.1 in the April final reading. The Leading Index for April is expected to decrease 5.4% on month, compared to -6.7% in March. Finally, Existing Home Sales for April are expected to slip to 4.22 million homes on month, from 5.27 million homes in March.                                                          

The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CHF. In Europe, the European Commission has posted final readings of April CPI at +0.3% (vs +0.4% on year expected). The U.K. Office for National Statistics has released April CPI at +0.8% (+0.9% on year expected) and April PPI at -0.7%, vs -0.5% expected.

The Australian dollar was bullish against most of its major pairs with the exception of the NZD.

Looking at the major currency pair movers, the USD/CHF

fell 67 pips to 0.9646 the day's range was 0.9638 - 0.9717 compared to 0.9699 - 0.9730 in the previous session. From a technical perspective the USD/CHF broke below a consolidation zone in place since May 12th. Key resistance is at 0.967. The 20-period moving average is trending lower as the pair starts a new bearish trend. Look towards the 0.961 support level for a target as long as the currency pair remains below 0.967. 



Source: GAIN Capital, TradingView

Happy Trading.

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.