USD/CHF loses bullish momentum as DXY slips on mixed US data

USD/CHF stays flat near mid-0.99s.
DXY fails to break above the 95 mark.
Wall Street set to open the day lower.

Eren Sengezer FXStreet

The USD/CHF pair reached a daily high at 0.9980 ahead of the NA session and lost its bullish momentum to turn flat near mid-0.99s.

Although the greenback strength helped the pair extend its upside earlier in the day, the mixed macroeconomic data from the United States forced the US Dollar Index to erase a part of its daily gains. Today's data showed that housing starts increased by 5% in May to beat the market expectation of while building permits contracted by 4.6% following April's 0.9% decrease. The DXY, which came within a touching distance of the 95 mark, is now at 94.78, still up 0.4% on the day.

On the other hand, the risk-off mood keeps the demand for traditional safe-havens strong on Tuesday. Japan's Nikkei 225 Index closed the day 1.77% lower and Germany's DAX and the UK's FTSE are both losing 0.4% at the moment. Moreover, Wall Street is looking to start the day lower with the Dow Jones Industrial Average and the S&P 500 dropping 0.4% and 1% respectively in the pre-market trading.

Technical levels to consider

On the upside, with a daily close above 1.0000 (parity/psychological level), the pair could rise toward 1.0055 (May 9 high) and 1.0095/1.0100 (May 10, 2017, high/psychological level). On the downside, supports are located at 0.9925 (50-DMA), 0.9880 (20-DMA) and 0.9790 (Jun. 7 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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