Dead Cat USD/CHF Bounces Off Support – US Events Awaited
Arslan Butt • 1 min read
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).