USD/CHF snaps three-day uptrend, looks to US data with eyes on 0.9100

USD/CHF trims intraday losses, hangs near weekly top.
Market sentiment dwindles post US CPI debacle, US data eyed.
S&P 500 Futures mildly bid, US Treasury yields retreat.

Anil Panchal FXStreet

USD/CHF hangs in balance around 9088, following the recent recovery, as the US dollar regains bids ahead of Thursday’s European session. The pair jumped the most since late March the previous day, marking a three-day uptrend, post-US CPI release. While the latest run-up in the greenback seems to ignore a pullback in the US bond yields.

Earlier in Asia, headlines concerning the geopolitical tensions in the Middle East and the coronavirus (COVID-19) fears from Japan weighed on the market sentiment amid a light calendar and off in multiple markets. The sour mood extends afterward as traders look to weekly Jobless Claims and Producer Price Index (PPI) for April for fresh impulse.

On Wednesday, the US Consumer Price Index (CPI) for April rallied the most since 2008, 4.6% YoY versus 3.6% expected and 2.6% prior. The inflation run-up caused market havoc over the US Federal Reserve’s (Fed) future actions, not to forget challenges to fiscal stimulus.

The risk-off mood put a bid under the US Treasury yields, marking the biggest daily gains in two months, currently down 1.5 basis points (bps) near 1.68%. The US dollar was the major gainer due to the bond selling.

Against this backdrop, S&P 500 Futures print mild gains whereas the stocks in Asia-Pacific remain offered.

Given the lack of major data/events, USD/CHF may rely upon the US dollar moves for fresh direction, which in turn suggests the buyer’s return.

Technical analysis

Despite crossing a convergence of 200-day and 100-day SMA, around 0.9085, USD/CHF needs a daily closing beyond the 1.5-month-old resistance line of 0.9090 to direct buyers toward the monthly top near 0.9165.

Additional important levels

Overview
Today last price	0.909
Today Daily Change	-1 pip
Today Daily Change %	-0.01%
Today daily open	0.9091

Trends
Daily SMA20	0.912
Daily SMA50	0.9235
Daily SMA100	0.9082
Daily SMA200	0.9083

Levels
Previous Daily High	0.9094
Previous Daily Low	0.903
Previous Weekly High	0.9165
Previous Weekly Low	0.9004
Previous Monthly High	0.9473
Previous Monthly Low	0.908
Daily Fibonacci 38.2%	0.907
Daily Fibonacci 61.8%	0.9054
Daily Pivot Point S1	0.9049
Daily Pivot Point S2	0.9008
Daily Pivot Point S3	0.8986
Daily Pivot Point R1	0.9113
Daily Pivot Point R2	0.9135
Daily Pivot Point R3	0.9177

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.