Greenback Mixed, USD/CHF Falls Deep Into The Red - Forex News by FX Leaders
USD/CHF

Greenback Mixed, USD/CHF Falls Deep Into The Red

Posted Thursday, July 8, 2021 by
Shain Vernier • 2 min read

It has been an active day on the forex, with several of the majors trending. At press time (about 1:15 PM EST), the EUR/USD (+0.44%), USD/CHF (-1.05%), USD/CAD (+0.41%), and USD/JPY (-0.72%) have been the big movers and shakers. For the USD/CHF, the Swissy has dominated the Greenback prompting a plunge toward the 0.9125 quarter-handle.

Although June was a fairly solid month for the USD, the action was certainly contested. A mixed bag of fundamentals and a long-term downtrend have currency players torn on the Greenback’s future. Today has brought more of the same as lagging WTI pricing has boosted sentiment toward the USD/CAD. However, the USD is well off versus the safe havens CHF and JPY. For now, we are seeing heavy two-way action across the majors.

On the economic news front, the key story today was the spike in Initial Jobless Claims. The figure came in at 373,000, well above projections (350,000) and slightly higher than the previous release (371,000). The growth in Initial Jobless Claims was somewhat unexpected, as Continuing Jobless Claims fell to 3.339 million from 3.484 million. However, this figure also disappointed expectations (3.335 million). 

The bears have dominated the USD/CHF throughout the trading session. Let’s take a look at the technicals and see where this market stands.

USD/CHF Plunges Into The Red For July

June was a solid month for USD/CHF bulls as rates tested the 0.9250 level. Now, this pair is on the brink of a short-term correction.

USD/CHF, Weekly Chart
USD/CHF, Weekly Chart

Here are two levels to watch in this market:

  • Support(1): Weekly SMA, 0.9122
  • Support(2): Bollinger MP, 0.9121

Bottom Line: Converging indicators are a good thing. For the USD/CHF, the Bollinger MP and Weekly SMA are setting up to be robust support at 0.9121-22. Until elected, I’ll have buy orders in the queue from 0.9126. With an initial stop loss at 0.9094, this trade produces 32 pips on a standard 1:1 risk vs reward ratio.

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