USDCHF intraday downtrend remains in play

The US Dollar was bearish against all of its major pairs on Wednesday. The USD/CHF continues its bearish trend. Here is an update on the levels.

FED 2

USDCHF intraday downtrend remains in play

The US Dollar was bearish against all of its major pairs on Wednesday.

On the economic data front, the Mortgage Bankers Association's Mortgage Applications rose 9.3% for the week ending June 5th, from -3.9% in the week before. The Consumer Price Index declined 0.1% on month in May (0.0% expected), compared to -0.8% in April. The Federal Open Market Committee (FOMC) kept the Federal Funds Target Rate between 0.00% to 0.25%, in line with the last FOMC meeting. 

On Thursday, the Producer Price Index Final Demand for May is expected to rise 0.1% on month, from -1.3% in April. Initial Jobless Claims for the week ending June 6th are expected to fall to 1,550K, from 1,877K in the previous week. Finally, Continuing Claims for the week ending May 30th are expected to decrease to 20,000K, from 21,487K in the prior week.                                                                                                        
The Euro was mixed against all of its major pairs. In Europe, France's INSEE has posted April industrial production at -20.1% (vs -20.0% on month expected).

The Australian dollar was bullish against most of its major pairs with the exception of the CHF and JPY.

We continue to see USD downside pressure. The Fed announcing the maintaining of low rates over the next two years cant be helping USD bulls. The dollar index declined 0.29 points to 96.033. The USD/CHF dropped 70 pips making the pair one of the largest movers in back to back trading sessions. Yesterday we posted a bearish trading plan for the USD/CHF and today we reached all downside targets. We see the downtrend continuing therefore we have tightened our stop-loss pivot to the 0.948 resistance level. Look for the 50-period moving average to act as resistance on the decline. 



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.