USD/CHF Price Analysis: Faces selling pressure above 0.9100 after weak US PMI

Source Fxstreet
  • USD/CHF faces pressure above 0.9100 as US Dollar drops after weak S&P Global PMI data for April.
  • The preliminary Manufacturing PMI falls below the 50.0 threshold.
  • The Fed advocates for keeping interest rates at their current levels longer.

The USD/CHF pair faces a sell-off above the round-level support of 0.9100 in Tuesday’s early American session. The Swiss Franc asset falls as the US Dollar Index (DXY) drops to 105.80 after the S&P Global reported weak preliminary PMI data for April.

The agency reported that both Manufacturing and Services PMI missed expectations. The Manufacturing PMI slips below the 50.0 threshold that separates expansion from contraction. The factory data lands at 49.9 lower than the expectations of 52.0 and the prior reading of 51.9. The Services PMI drops to 50.9 from the consensus of 52.0 and the former reading of 51.7.

Going forward, investors will shift focus to the United States core Personal Consumption Expenditure Price Index (PCE) data for March, which will be published on Friday.

The core PCE Price Index data is the Federal Reserve’s (Fed) preferred inflation measure. It is estimated to have grown steadily by 0.3% on a month-on-month basis, with annual inflation softening to 2.6% from 2.8% recorded in February. This will influence market expectations of Fed rate cuts, which are currently anticipated in the September meeting.

10-year US Treasury yields rise further to 4.64% as the Fed continues to argue that the current monetary policy framework is appropriate as stubbornly higher inflation in the first quarter of this year cannot be ignored.

The formation of the USD/CHF pair on a four-hour timeframe appears to be a Rising Wedge chart pattern, which indicates a limited upside and is generally followed by a breakdown move. The 20-period Exponential Moving Average (EMA) at 0.9100 glued with the Swiss Franc asset, suggesting indecisiveness among market participants.

The 14-period Relative Strength Index (RSI) shifts to the 40.00-60.00 range, indicating a consolidation ahead.

Fresh downside would appear if the asset breaks below the psychological support of 0.9000, which will expose it to March 22 low at 0.8966, followed by March 1 high at 0.8893.

In an alternate scenario, an upside move above April high of 0.9150 will drive the asset towards the round-level support of 0.9200. A breach of the latter will push the asset further to 4 October 2023 high at 0.9232.

USD/CHF four-hour chart

USD/CHF

Overview
Today last price 0.9094
Today Daily Change -0.0026
Today Daily Change % -0.29
Today daily open 0.912
 
Trends
Daily SMA20 0.9073
Daily SMA50 0.8931
Daily SMA100 0.8776
Daily SMA200 0.8837
 
Levels
Previous Daily High 0.9124
Previous Daily Low 0.9098
Previous Weekly High 0.9152
Previous Weekly Low 0.9012
Previous Monthly High 0.9072
Previous Monthly Low 0.873
Daily Fibonacci 38.2% 0.9114
Daily Fibonacci 61.8% 0.9108
Daily Pivot Point S1 0.9104
Daily Pivot Point S2 0.9088
Daily Pivot Point S3 0.9077
Daily Pivot Point R1 0.913
Daily Pivot Point R2 0.914
Daily Pivot Point R3 0.9157

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anywayMicron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
Author  Irene Q.
Sep 23, Wed
Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
placeholder
US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth storyUS September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
Author  Suzie
Sep 24, Thu
US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
placeholder
WTI (USOIL) Is down 2.03% on Sep 25: Here Is WhyWTI (USOIL) is down 2.03% at Sep 24 22:20(UTC+0), now at $92.517, with a 7-day down of 3.63%.What is driving WTI (USOIL)’s stock price down today?The drop in WTI crude oil prices was primarily driven by
Author  TradingKey
Sep 25, Fri
WTI (USOIL) is down 2.03% at Sep 24 22:20(UTC+0), now at $92.517, with a 7-day down of 3.63%.What is driving WTI (USOIL)’s stock price down today?The drop in WTI crude oil prices was primarily driven by
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
7 hours ago
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Related Instrument
goTop
quote