Solid News

USDCHF Market Update

8/2/2022 1:21 PM

Due to the depreciation of the American currency, the USD/CHF pair is trading within a corrective trend, around 0.9520.

The dynamics of the franc are rather negative since there are still no factors for its growth, and investors perceive the published macroeconomic statistics as neutral: the index of economic expectations published monthly by the Leibniz Center for European Economic Research in Mannheim (ZEW) reached –57.2 in July, which was better than the absolute June anti-record of –72.7 points but it is still lower than the peak of the coronavirus pandemic in 2020. The Zurich Polytechnic Federal Institute (KOF) Switzerland's index of leading economic indicators has been declining for fifteen consecutive months, and in July, the indicator was 90.1 points, falling from 95.2 points in June. Given that it is a leading indicator of the gross domestic product (GDP) trend, it can be assumed that the growth of the Swiss economy will continue to slow down in the second quarter.

The US currency continues its smooth decline, trading above 105.000 in the USD Index, as investor confidence in the dollar is falling. Yesterday's Manufacturing PMI exacerbated the situation: the core indicator for July amounted to 52.2 points, below 52.7 points in June, and the same indicator from the ISM Institute for Supply Management reached 52.8 points, also below 53.0 points for the last month.


On the weekly chart of the asset, the price is correcting within the possible Head and shoulders pattern, preparing to continue a local decline. Technical indicators have completely reversed and gave a sell signal: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram moved into the sell zone, continuing to form down bars.

Resistance levels: 0.9540, 0.9700. | Support levels: 0.9462, 0.9304.



Find Us
First Floor, First St Vincent Bank LTD Building James Street Kingstown St Vincent and the Grenadines
Call Us
+1 415 367 3742


Solid ECN Securities is an international brand formed and authorized in Saint Vincent and the Grenadines with the registration number 1390 LLC 2021 committed to offering the best possible trading experience. Disclosure: Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.
Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, Curaçao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2022 SolidECN.com