- USD/CHF recovery attempt of 0.9575, capped) below 0.9650.
- The dollar fails to take advantage of the weakness of the dollar after worse-than-expected Swiss GDP.
- The usd is hovering above the key support at 0.9590.
The US dollar reversal of 0.9700 region, found support on Tuesday at 0.9575, a two-month low, before bouncing back above 0.9600. The USD recovery, however, have been limited below 0.9650, with the pair almost identical on the daily chart foreign exchange weighed in the middle of a positive market mood.
The USD fails to take advantage of the weakness of the USD
The usd opened the day on a bid tone, advancing to session highs at 0.9648, on the back of weaker than expected Swiss Gross Domestic Product data. The Swiss economy contracted by 2.6% in the first quarter, to 1.6% of the deceleration of year-on-year, well beyond market expectations of 0.9 per cent of economic decline.
The US dollar has been, however, had no follow-up, and go back to levels right above 0.9600 during the us session. Better than expected US ADP employment figures and ISM non-manufacturing PMI, have brightened the market mood, which reflects positive on the equity markets and the increased demand for riskier assets like the EUR, GBP, AUD, NZD or.
USD/CHF hovering above important support at 0.9590
The pair is trading at a short distance from 0.9590, 14 April, 1 May, low). A clear breach of this level may increase bearish pressure to the March 27 low at 0.9500 and the March 16 low at 0.9390. To the upside, immediate resistance lies at 0.9640/50 (May 21 and 28 low), then, without doubt, to the former trendline support around 0.9680, and 0.9735 (Nov 25 high).