The U.S. dollar broke towards the downside and lower from its trading range with the Swiss franc. The benchmark USD/CHF currency exchange rate broke lower but has found some support at the fifty (50) day simple moving average.
Yesterday, the United States released bleak economic data. The monthly flash IHS Markit manufacturing purchasing managers’ index fell from 59.9 in July to 55.4 in August. The monthly flash IHS Markit services purchasing managers’ index also came in below expectations. The U.S. IHS Markit services purchasing managers’ index fell from July’s 59.1 to August’s 55.2.
Overnight, Dallas Federal Reserve branch President Robert S. Kaplan spoke. He is considered a hawk on the Federal Open Market Committee (FOMC). He said he is open to considering easing back on monthly asset purchases. This could happen sooner than later despite the rise in Delta coronavirus strain cases.
Today’s economic calendar is fairly quiet. Switzerland is not releasing any economic data. Neither is the United Kingdom or Japan. The world’s largest economy, the United States will publish weekly crude oil inventory levels, monthly home sales and the Richmond Federal Reserve will publish their monthly manufacturing index. Germany is publishing their quarterly gross domestic product (GDP).
Daily US Dollar Technical Analysis (USD/CHF)
Looking at the above daily MT 4 price action chart, the almighty dollar remains under pressure against the Swiss franc headed into Tuesday. The USD/CHF Forex market is near a four day low price point which is at 0.9125.
The dollar had retraced some losses to trade above 0.9180 after finding support lining up at the 50 day simple moving average. This downside barrier lines up at 0.9160. On the upside, the one hundred day simple moving average is in play at 0.9117.
The next upside barrier lines up at 0.9120. A daily close below the 50 day simple moving average opens the door for 0.90. Fore traders should also note that the 14 day relative strength index (RSI) is above the mid-point near 60 and trending lower.