The dollar is approaching an established resistance on the 1-hour time frame.
Will USD/CHF extend its downtrend?
Before moving on, ICYMI, yesterday’s watchlist checked out GBP/NZD’s Double Bottom pattern at the bottom of a range. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Putin wants ‘unfriendly’ countries to pay for Russian gas in roubles
U.S. new home sales drop further, down by 2% in February as mortgages rates and prices rise
U.S. crude oil and fuel inventories fell across the board last week
Britain to cut fuel duty by 5p per litre for one year
AU manufacturing PMI improves from 57.0 to 57.3 in March
AU services PMI higher from 57.4 to 57.9 in March
BOJ board agreed inflation may overshoot expectations – Jan meeting minutes
Japan PMI manufacturing rose to 53.2 in March, PMI services rose to 48.7
U.S. reinstates 352 product exclusions from China tariffs
Asia FX bears remain firm as risks from geopolitics, inflation persist
Upcoming Potential Catalysts on the Forex Economic Calendar:
France’s manufacturing and services PMIs at 8:15 am GMT
SNB’s monetary policy decision at 8:30 am GMT
Germany’s manufacturing and services PMIs at 8:30 am GMT
Eurozone’s manufacturing and services PMIs at 9:00 am GMT
U.K.’s manufacturing and services PMIs at 9:30 am GMT
U.S. core durable goods orders at 12:30 pm GMT
U.S. initial jobless claims at 12:30 pm GMT
U.S. manufacturing and services PMIs at 1:45 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: USD/CHF
USD/CHF has been on a downtrend since mid-March but it looks like there are enough bulls around the .9300 psychological level to keep the dollar afloat.
Today’s parade of lower-tier economic releases could dictate the dollar’s trends in the next trading sessions.
The odds favor dollar bears as USD/CHF hangs out near the 100 SMA, .9350 minor psychological zone, and the channel resistance on the 1-hour time frame.
It doesn’t hurt the bears that Markit’s March manufacturing and services PMIs are expected to print lower than their February readings.
Don’t discount an upside breakout though! Market bulls are still feelin’ the love for the dollar after Fed Governor Powell hinted multiple rate hikes in the foreseeable future.
Watch how USD/CHF reacts to the channel resistance. A rejection at the 100 SMA area could drag the dollar back down to its weekly lows.
A clear break above the channel, however, could boost USD/CHF to the .9370 or .9400 previous areas of interest.
