USD/CHF shows a sharp recovery from 0.8900 as focus shifts to US Durable Goods Orders

USD/CHF has recovered sharply from 0.8900 after a corrective move.
The risk-aversion theme in the overall market and pre-Fed policy anxiety improved safe-haven appeal for the US Dollar.
An upbeat US Durable Goods Orders will indicate that US core inflation would be more persistent ahead.

Sagar Dua FXStreet

The USD/CHF pair has recovered its minor correction quickly after dropping to near the round-level support of 0.8900 in the early Asian session. The Swiss Franc asset showed a stellar recovery on Tuesday after a fresh two-year low of 0.8860. Ample bids for the US Dollar Index (DXY) also infused fresh blood into the Swiss Franc asset.

S&P500 futures recorded significant losses on Tuesday after upbeat earnings from Microsoft and Google failed to recede negative market sentiment. Also, quarterly earnings from First Republic Bank showed a sharp fall in customers’ deposits, which has forced the financial institution to rely on borrowings that will attract higher interest rates.

The risk-aversion theme in the overall market and pre-Federal Reserve (Fed) policy anxiety improved the safe-haven appeal for the US Dollar. The USD Index showed a perpendicular upside move and printed a two-day high of 101.95. A power-pack action is expected from the USD Index this week ahead of economic indicators.

Wednesday’s United States Durable Goods Orders data (March) is seen expanding by 0.8% against a contraction of 1.0%. The economic data indicates forward demand made to manufacturers for core goods. An upbeat Durable Goods demand data will make the core Consumer Price Index (CPI) more persistent ahead.

Apart from that, Thursday’s annualized Gross Domestic Product (GDP) data will be of utmost importance. The consensus indicates that GDP (Q1) declined to 2.0% from the former pace of 2.6%. A weaker GDP data might escalate fears of a slowdown in the US economy.

On the Swiss Franc front, ZEW Survey-Expectations (April) will be in focus. As per the estimates, business conditions will improve to -18.9 from the former release of -41.3. An occurrence of the same might support the Swiss Franc ahead.

USD/CHF

Overview
Today last price	0.8918
Today Daily Change	0.0041
Today Daily Change %	0.46
Today daily open	0.8877

Trends
Daily SMA20	0.9029
Daily SMA50	0.9182
Daily SMA100	0.9222
Daily SMA200	0.9463

Levels
Previous Daily High	0.8928
Previous Daily Low	0.8876
Previous Weekly High	0.9003
Previous Weekly Low	0.8908
Previous Monthly High	0.944
Previous Monthly Low	0.9072
Daily Fibonacci 38.2%	0.8896
Daily Fibonacci 61.8%	0.8908
Daily Pivot Point S1	0.8859
Daily Pivot Point S2	0.8842
Daily Pivot Point S3	0.8807
Daily Pivot Point R1	0.8911
Daily Pivot Point R2	0.8946
Daily Pivot Point R3	0.8963

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.