Has The USD Found A Bottom? - Forex News by FX Leaders
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Has The USD Found A Bottom?

Posted Wednesday, June 26, 2019 by
Shain Vernier • 1 min read

It has been a rough week two weeks for the USD, but the tide appears to be turning. Fresh optimism over a G20 trade war breakthrough and key FOMC members suggesting that a ½ point rate cut is unwarranted have boosted the Greenback. At least in the USD/CHF and EUR/USD, the prevailing trends have slowed a bit.


On the economic news front, there were several items reported during today’s pre-Wall Street open. A quick look at the highlights:

Event                                                                                            Actual           Projected         Previous
Durable Goods (May)                                                                  -1.3%                 -0.1%                -2.8%
Non-Defense Capital Goods Orders (May)                              0.4%                   0.1%                -0.1%
Goods Trade Balance (May)                                                    $-74.55B               NA                $-70.92B

All in all, there isn’t a whole lot to see here. Durable Goods slipped and the U.S. trade deficit grew. While not a damning indictment of trade war fallout, this collection of numbers doesn’t bode particularly well for the U.S. economy.

Has The USD Found Solid Ground?

The USD/CHF is in the process of putting together back-to-back winning sessions. For the moment, it appears as though the run to safe-havens is over.

the usd
USD/CHF, Daily Chart

Here are the levels to watch as we roll into late-week trade:

* Resistance(1): 38% Current Wave Retracement, .9815
* Support(1): January 2019 Low, .9716

Bottom Line: The selloff in the USD has taken a bit of a pause. Subsequently, the Swissie may give us a selling opportunity in the near future. As long as the Swing Low (.9693, not pictured) holds firm, I will have sell orders in queue from .9809. With an initial stop at .9834, this trade produces 25 pips on a 1:1 risk vs reward management plan.

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About the author

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.
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