Dead Cat USD/CHF Bounces Off Support – US Events Awaited

The dollar fell due to weak economic data that fueled rate cut hopes. On Friday, the dollar is trading strongly bearish early in European season, amid growing expectations that the Federal Reserve would have to cut interest rates to support the US economy trade balance.

USD/CHF is one of the victims today. The USD has been a safe haven currency when it comes to the US-Sino trade war. Nevertheless, the scenario has changed: now traders worry that the trade dispute will burn the American economy more than presumed, thereby boosting bets for the Federal Reserve’s rate cut this year.

As the Swiss Franc is considered as a stronger kind of safe haven, we can expect further buying in the CHF, which may drag the USD/CHF pair lower.

The pair fell below the 50-day MA (1.0070) and the line connecting January and March lows. If it goes below the 100-day MA (1.0024), the target will lie at 0.9955 (200-day MA, 50-day MA, and the line connecting 2018 and 2019 lows).

Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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