The USDCHF has continued its run to the downside today, and in the process has moved below a swing area on the daily chart between 0.9194 and 0.9211. The pair is trading at the lowest level since March 2022.
Looking at the daily chart above, the next target would be the swing low going back to February 21 and March 1, 2022. Those levels come in at 0.91465. Move below that level, and a swing area between 0.90810 and 0.91014 would be the next target area.
For most of December 2022 and into this month, the price of the USDCHF has reentered into a consolidation area from June 21 until April 22 between 0.9081 on the downside and 0.93822 on the top side (see red box on the chart above).
Yes... there was a instance in July/August 2021 when the price moved below the lower extreme, but failed. There also was a time in in March 2022 when the price moved above the higher extreme of the "red box", but also failed. However the vast majority of the trading took place within that "red box".
Last week, the price tried to move above the upper extreme on two separate occasions but each push failed (including Friday before the Goldilocks US jobs report).
The sellers pushed lower on Friday and are continuing the process today.
Close risk now comes in at 0.92115 (a move back above the December 14 low).
Lower yields are helping to push the dollar lower:
- 2 year 4.193%, -6.3 basis points
- 5 year 3.641% -6.0 basis points
- 10 year 3.512% -4.8 basis points
- 30 year 3.6.6 percent -3.2 basis points
US stocks remain elevated with the NASDAQ leading the way with a gain of 2.08%. The Dow Industrial Average is up 0.78% in the S&P index is up 1.32%.
The lower dollar has pushed the price of gold higher. The current price of gold is up $11.15 or 0.60% at $1876.50.
The price of crude oil is also higher help by China reopening hopes and stronger growth as a result. The price of crude oil is currently up $1.35 on the day at $75.14. Although higher it is in the middle of the day's trading range between $73.55 and $76.69.
