Tuesday May 05 - FX Market Wrap USD/CHF in focus

The USD/CHF jumped the most in Tuesday's trading. Prices remain supported by the 30-period moving average on a 30-min chart.

Uptrend 2

Good afternoon, 

Tuesday May 05 FX Market Wrap - USD/CHF in focus

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the CHF and EUR. On the economic data front, the Trade Deficit rose to 44.4 billion dollars on month in March (44.2 billion dollars expected), from a revised 39.8 billion dollars in February. Markit's U.S. Services Purchasing Mangers' Index declined to 26.7 on month in the April final reading (27.0 expected), from 27.0 in the April preliminary reading, marking a record low. The Institute for Supply Management's Non-Manufacturing Index dropped to 41.8 on month in April (38.0 expected), from 52.5 in March, a low last reached in 2009. On Wednesday, the Mortgage Bankers Association's Mortgage Applications data is expected for the week ending May 1st.                 

The Euro was bearish against most of its major pairs with the exception of the CHF. In Europe, German judges assessed the ECB’s quantitative easing program, which was introduced in 2015, and said it partially violates the law. But this decision does not concern financial assistance measures taken by the EU or the ECB in the context of the current Covid-19 crisis. Research firm Markit has published final readings of April Services PMI for the U. K. at 13.4 (vs 12.3 expected). The European Commission has posted March PPI at -2.8 (vs -2.6% on year expected).

The Australian dollar was bullish against all of its major pairs. 


Regarding major FX pairs,

• EUR/USD dropped 65pips to 1.0842 the day's range was 1.0826 - 1.0926 compared to 1.0896 - 1.0986 the previous session.

• GBP/USD slipped 4pips to 1.2439 the day's range was 1.2421 - 1.2484 compared to 1.2406 - 1.2516 the previous session.

• USD/JPY fell 23pips to 106.51 the day's range was 106.42 - 106.90 compared to 106.64 - 107.07 the previous session.

• USD/CHF jumped 74pips to 0.9724 the day's range was 0.9646 - 0.9735 compared to 0.9609 - 0.9663 the previous session.

• AUD/USD rose 9pips to 0.6437 the day's range was 0.6417 - 0.6476 compared to 0.6373 - 0.6435 the previous session.

• USD/CAD declined 39pips to 1.4048 the day's range was 1.4008 - 1.4095 compared to 1.4051 - 1.4152 the previous session.

• The dollar index gained 0.3pt to 99.787 the day's range was 99.299 - 99.970 compared to 99.087 - 99.599 the previous session.



FX pair in focus, 

The USD/CHF jumped the most in Tuesday's trading. Prices remain supported by the 30-period moving average on a 30-min chart. The 61.8% Fibonacci retracement level from the swing high of 0.98 and swing low of 0.959 was broken to the upside in early trading indicating upside momentum. As long as the pair can remain above the 0.9685 pivot we may see a continuation above 0.9735 resistance towards a target of 0.9765. 



Source: GAIN Capital, TradingView


Happy Trading.

More from Forex

Related Articles

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.