By Mexgroup.com
USD/CHF uninspired by US data
Price is trading in the red and resumes the yesterday’s bearish candle, but maybe this retreat is only temporary because has touched an important support area. The greenback has lost ground versus the CHF even if the USDX has managed to stay above the 92.80 yesterday’s low.
The dollar index is fighting hard to increase, but as you already know, the perspective remains bearish and could reach the 92.49 static support in the upcoming days, where he could find support again. USDX increased surprisingly today as the United Sates data have come in mixed, but is somehow understandable because is too oversold on the short term.
The United States ISM Manufacturing PMI decreased from 57.8 to 56.3 points, has come below the 56.4 estimate, while the Construction Spending dropped by 1.3%, even if the traders have estimated a 0.4% growth.
The ISM Manufacturing Prices increased from 55.0 to 62.0 points in July, beating the 56.5 estimate, the Personal Spending rose by 0.1%, matching 0.1% estimate, while the Core PCE Price Index rose by 0.1%, matching expectations and the 0.1% growth in the former reading period. The Personal Spending increased by 0.1% as well, but the Personal Income rose by 0.0%, less versus the 0.4% estimate.
Free Reports:
USD/CHF dropped after the failure to reach and retest the median line (ml) of the descending pitchfork, so the correction is natural. I’ve said in the previous analysis that the price could come down to retest the 0.9634 static support (resistance turned into support) before will resume the upside movement.
We may have a buying opportunity if will retest also the second warning line (WL2) of the major ascending pitchfork. A further increase will be confirmed after a valid breakout above the median line (ml) of the descending pitchfork.
Brent Oil turned to the downside
Price plunged today and erased the last two day’s gains, has come down also because the Loonie is losing ground versus the greenback. The USD/CAD rallied today and resumed the yesterday’s bullish candle, even if the United States data have come in mixed.
The price drops after the failure to close above the 53.03 static resistance. I’ve said in the previous articles that the rate is expected to retest the 53.03 level, where he may find resistance again. However, the rate could increase again after the retest of the sliding line (SL). Only a valid breakdown below the $50.0 per barrel will invalidate a further increase.
EUR/GBP minor decrease favored
Price is trading in the red on the short term and is expected to decrease a little on the short term after the failure to reach the 0.8993 previous high. It is attracted by the median line (ML) of the major ascending pitchfork, where he may find support again. The outlook is bullish as long as it stays above the median line (ML).
By Olimpiu Tuns
Market Analyst
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The post Daily Market Report – USD/CHF melting down August 01, 2017 appeared first on mexgroupblog.
