USDCHF Daily Outlook 24-07-20 – Last week the market sentiment turned sour towards the end, with the S&P 500, Dow Jones, and Nasdaq Composite giving up gains. Escalating US-China tensions, worse-than-expected US initial jobless claims, and disappointing earnings from Microsoft and Netflix seemed to have contributed to the pessimistic tone in the market. The USD also faced massive pressure and the downfalls seem to have continued into this week.
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On Monday we’ll be eying the German IFO business climate as well as the US durable Goods Orders.
Today I’m looking at the USD/CHF, which along with almost all other major crosses, has been bleeding on USD weakness. The USD/CHF, in particular, has dropped to the lows of March 2020, when COVID-19 was attacking the markets.
If the pair is able to break below the key support level of 0.9256 on Monday, then we could expect the bloodbath to continue in a similar pattern as in 2015 when the pair last visited 0.90. The lowest price the USD/CHF pair has dropped in the past 8 years is that of Black Monday in January 2015, when it dropped to 0.83. We’re not currently expecting that to happen and the hard support is set at 0.87.
Do you think the bearish momentum will continue this week? Head over to the comments section and let me know.
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