USD On The Retreat As Forex Week Gets Underway

It has been a rough start to the forex trading week for the Greenback. Losses against the Japanese yen, euro, and Swiss franc have highlighted the early action. For the second straight session, the USD/CHF has been extremely active. Following a rejection of two key daily topside resistance levels, rates have fallen more than 75 pips.

Today’s move is a bit peculiar so close to the projected FED rate hike due up Wednesday. The CME Fedwatch Index is currently estimating there to be a 78% chance of the Federal Funds Target rate being increased by 25 basis points. This figure is 10% higher than one month ago and suggests that the FED is almost certain to boost rates for the fourth time this calendar year.

USD/CHF Technical Outlook

In a live market update from last week, I made a trade recommendation to short the USD/CHF from daily topside resistance. The play turned out to be a good one, with rates falling dramatically shortly after entry.

Here are several levels to watch for the near future in the Swissie:

• Resistance(1): Bollinger MP & Daily SMA, .9963
• Support(1): 62% Current Wave, .9910

Overview: It appears that safe-havens are gaining traction as preferred assets for 2019. Rallies in the Swiss franc, Japanese yen, and gold back up this assertion. In addition, today’s U.S. Treasuries auction came in slightly positive. Yields on the 6-month T-Bill rose to 2.485%, with the 3-month T-bill holding firm at 2.375%.

With a wide-open economic calendar for tomorrow, the markets will become increasingly focussed on Wednesday’s FED announcements. Stay tuned to FX Leaders for updates and analysis on the coming FED Interest Rate Decision and FOMC economic projections.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

Ethereum Price Prediction: Bullish Triangle Targets $6,000 – Key Levels to Watch

6 hours ago

Save

Ethereum Price Prediction Soars—$265M Liquidated, ETH Hits $2,331

2 days ago

Save

Silver Eyes $33.24 Breakout as U.S.-China Trade Talks Heat Up

3 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments