Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar continues to lose ground against the Swiss franc. The benchmark USD/CHF currency exchange rate has been inching lower since challenging the five month high price point at 0.9230 on Monday. Now this Forex market is consolidating ahead of economic data.
Today is all about the services purchasing managers’ index (PMI). The European Union, Germany, France, Italy and Spain will all release their monthly services purchasing managers’ index. The United Kingdom will publish their monthly composite purchasing managers’ index and their monthly services purchasing managers’ index.
The United States is also publishing their monthly services purchasing managers’ index. The Institute for Supply Management (ISM) will release their U.S. services purchasing managers’ index as well. The key metric with the services PMIs will be the employment sub-index.
Daily Dollar Technical Analysis (USD/CHF)
Looking at the above daily MT 4 price action chart, the almighty dollar looks sluggish. This should contain any significant gains for the USD/CHF Forex market. Also, the greenback is hovering around the short-term 21 day moving average.
The 14 day MACD histogram is signaling overbought as buying conditions for the dollar look a bit stretched. The USD/CHF currency exchange rate seems ready to challenge the 38.2 percent Fibonacci price level.
A break below this Fibonacci level opens the door for the 16 September low price point 0.9193 before the technical support lining up at 0.9150. This is also a key horizontal support level.
On the upside, potential for the greenback to make any significant gains seems limited. The first upside barrier is around the 23.6 percent Fibonacci level. This layer of technical resistance lines up at 0.9275.
The next layer of technical resistance is a key psychological barrier in play at the round 0.93 number. The next upside barrier for the USD/CHF currency exchange rate line up at the 29 September high of 0.9355.
