Double Bottom Holds For The USD/CHF
It has been a quiet open to the U.S. trading week. The U.S. indices are posting a moderate rally, led by the DJIA DOW (+98), S&P 500 SPX (+13), and NASDAQ (+45). At this point, it appears that risk continues to be in vogue. Safe-havens aren’t grabbing their usual market share, as shown by tight daily ranges in gold, the USD/JPY, and USD/CHF.
However, U.S. Treasuries continue to be a hot item. Yields on short-term debt have fallen yet again, with the 3 and 6-Month T-Bills sliding towards historical lows:
Event Actual Previous
3-Month T-bill 1.52% 1.62%
6-Month T-bill 1.535% 1.610%
In addition to the weekly debt auctions, the ISM-NY Business Conditions Index (Oct.) was released to the public. The number came in at 47.7, up from the previous release of 42.8. While this is a secondary metric at best, the improvement has brought a bit of optimism to the market, not to mention a few bids.
USD/CHF Bounces From Double Bottom
In a Live Market Update from last week, I outlined a buying opportunity for the USD/CHF. The trade set up beautifully, bouncing hard from the 0.9850 area.
+2019_11_04.png)
Here are two levels to keep an eye on as the day unfolds:
- Support(1): Double Bottom, 0.9843-38
- Resistance(1): Daily SMA, 0.9899
Overview: Compared to last week, the coming 5 days feature a limited economic calendar. No FED engagements are scheduled, nor are there any GDP figures. At least for the immediate future, the forex action is very likely to be muted.
Sidebar rates
Related Posts
