USDCHF At 17-Month Lows After Fed Emergency Rate Cut

USDCHF Daily Chart
USDCHF Daily Chart

USDCHF is under selling pressure for the fifth consecutive day after the Fed yesterday in a surprising move cut the interest rates by 50 basis points to 1%-1.25%. US Dollar got a hit on Monday after the weaker ISM manufacturing PMI. U.S. ISM Manufacturing PMI registered in at 50.1 below the market expectations of 50.5 in February. The ISM Manufacturing Prices Paid registered in at 45.9, also below the expectations of 51.

Traders today await the release of the ADP report on private-sector employment and the ISM Non-Manufacturing PMI, which affect the USDCHF price dynamics and produce some short-term trading opportunities.  

USDCHF technical outlook is bearish as the pair makes consecutively lower lows and lower highs and also trades below all major daily moving averages.  

The first support for the stands at 0.9540 the daily low. The next support level will be met at 0.9526 the low from April 10th, 2018. 

On the other hand, initial resistance will be met at 0.9596 the daily high. The next hurdle stands at 0.9654 the high from March 2, while Friday’s high at 0.9695 is the next supply zone. 

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