USD continues to slide USDCHF update

USD continues to slide, USD/CHF update

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the NZD, AUD and CAD. On the economic data front, The National Federation of Independent Business's Small Business Optimism Index rose to 94.4 on month in May (92.5 expected), from 90.9 in April. Wholesale Inventories increased 0.3% on month in the April final reading (+0.4% expected), compared to +0.4% in the April preliminary reading.

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending June 5th are expected. The Consumer Price Index for May is expected to release unchanged on month, compared to -0.8% in April. Finally, the Federal Open Market Committee (FOMC) is expected to keep the Federal Funds Target Rate between 0.00% to 0.25%, in line with the last FOMC meeting.

The Euro was bullish against most of its major pairs with the exception of the CHF and JPY. In Europe, the European Commission has reported final readings of 1Q GDP at -3.1% (vs -3.2% on year expected). The German Federal Statistical Office has posted April trade balance at 3.5 billion euros surplus (vs 11.6 billion euros surplus expected). France's INSEE has reported April trade balance at 5.02 billion euros deficit (vs 3.0 billion euros deficit expected). The Bank of France has released Industry Sentiment Indicator for May was released at 83, vs 50 in April.

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

Looking at active major pairs today, the USD/CHF fell 68 pips to 0.9508. Key resistance on an intraday chart has been identified at around the 0.9545 level. The pair remains under pressure as the USD continues to weaken against its majors. Traders that are bearish might want to consider keeping with the bearish trend down to test 0.9482 lows and ultimately 0.944 support. A break above 0.9545 would be a significant breakout with a target set at 0.9585 resistance.

Source: GAIN Capital, TradingView

Happy trading.

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, commodity futures, or digital assets, 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 StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.