Are USD/CHF Markets in Trouble as the Pair Declines Towards 0.8840 and Loses the 200-day SMA?
In the latest market update, the USD/CHF pair experienced a decline of 0.85% to 0.8835, signaling a loss of momentum as investors analyze the recent S&P PMI data from July.
The US dollar faced bearish pressure following the release of S&P PMIs, with the Services PMI increasing to 56 from 55.3, but the Manufacturing PMI dropping to 49.5 from 51.6. Key economic indicators such as GDP revisions, PCE, Durable Goods Orders, and University of Michigan sentiment are expected this week, influencing the USD’s performance. Additionally, the upcoming FOMC meeting may impact market dynamics.
Market sentiment suggests a 90% probability of a Fed rate cut in September, with economic data this week potentially swaying these odds. Accelerating inflation could boost demand for the USD, while weaker figures may lead to a more dovish Fed stance.
From a technical standpoint, the USD/CHF outlook appears bearish as the pair is below key SMAs and technical indicators remain negative. Support levels are at 0.8830 and 0.8800, while resistance levels are at 0.8870, 0.8900, and 0.8930.
In summary, the USD/CHF pair is facing downward pressure amid mixed economic data and expectations of a Fed rate cut. Traders should monitor key economic indicators and Fed statements for potential market movements in the coming weeks.