- DXY rises 0.27% and approaches 107.00.
- Swiss franc also falls against the euro, the yen among the worst.
- USD/CHF recovers from the 200-day moving average to the 20-day moving average.
The USD/CHF pair is rising for the fourth day in a row on Wednesday and trade in the area of highs in a week at 0.9540. The dollar is among the best performing currencies, despite US retail sales data and ahead of the Federal Reserve minutes.
The rise in sovereign bond yields is playing into USD/CHF’s favor, fueling the rebound that started from levels below 0.9400. The rallies have significant resistance ahead around 0.9550 where a horizontal level and the 20-day moving average converge. In case of exceeding this level, the dollar will gain important support.
If it fails at current levels, USD/CHF would start to set the stage for a consolidation with a correction. Supports can be seen at 0.9500 and 0.9485.
The EUR/CHF is recovering from historical lows and is approaching 0.9700, accumulating an advance of almost 100 pips in the last two days. The trend remains down, but the rebound offers a respite.
DXY is nearing the high of the week after Tuesday’s pullback. A rise in Treasury bond yields (although those of European sovereign bonds are also rising sharply) together with a drop in equity markets, support the greenback. The UK inflation data was a factor that encouraged the sale of bonds.
July retail sales in the US showed a reading similar to that of June, with an increase of 0.1% expected. The details of the report were more encouraging. At 18:00 GMT the Federal Reserve will publish the minutes of the latest Federal Reserve meeting, seeking clues about the central bank’s next steps.
|Today last price||0.9539|
|Today Daily Change||0.0046|
|Today Daily Change %||0.48|
|Today daily open||0.9493|
|Previous Daily High||0.9514|
|Previous Daily Low||0.9454|
|Previous Weekly High||0.9635|
|Previous Weekly Low||0.9371|
|Previous Monthly High||0.9886|
|Previous Monthly Low||0.9502|
|Daily Fibonacci 38.2%||0.9491|
|Daily Fibonacci 61.8%||0.9477|
|Daily Pivot Point S1||0.946|
|Daily Pivot Point S2||0.9428|
|Daily Pivot Point S3||0.9401|
|Daily Pivot Point R1||0.952|
|Daily Pivot Point R2||0.9547|
|Daily Pivot Point R3||0.9579|
Source: Fx Street