- USD / CHF exchanges near the 0.8900 area after the US Secretary of Commerce unveiled the relief plans for the automotive industry and the feeling of risks has improved slightly.
- Dollars demand remains supported by commercial developments and labor data in the United States lower than expected supplying speculation on monetary policy.
- The technical perspectives remain carefully optimistic while the USD / CHF sails on key mobile averages and consolidates recent gains.
The USD / CHF pair is negotiated approximately 0.8900 during the North American session on Tuesday, benefiting from a wider force in US dollars (USD). The American secretary of trade Howard Lutnick revealed that the plans of the White House aimed to attenuate the prices on the American car manufacturers, supporting a slight recovery of the appetite for global risks. Meanwhile, the US dollar index (DXY) is greater than 99.30, supported by expectations that weaker labor market data and consumer confidence gently could orient the federal reserve (Fed) to a more prudent political position. However, uncertainty remains around US-Chinese trade negotiations, preventing a stronger USD rally.
US Bureau of Labor Statistics (BLS) data has shown that job offers and work renewal (JOLTS) for Mars have dropped to 7.192 million, lacking expectations of 7.5 million and marking the lowest reading since September. In parallel, the confidence index of consumers of the Conference Board fell high at 86.0 in April, suggesting an increase in economic pessimism. Despite lower work and feeling readings, the USD has won slightly, the markets provided for a possible relief from commercial prices and awaited key economic figures later in the week, including versions of GDP and ISM PMI.
Elsewhere, geopolitical titles have influenced the feeling of risk. The American Treasury Secretary, Scott Bessent, stressed that China should take the initiative to defuse trade tensions, while Beijing’s decision to give up 125% on American ethane imports was considered a positive marginal. The markets remain cautious, especially since the contradictory messages of Washington and Beijing add to uncertainty.
Technical analysis
The USD / CHF has a constructive tone greater than 0.8880, leaning towards a progressive advance. The simple 20 -day mobile average (SMA) is around 0.8870, offering immediate support, while the 50 -day SMA almost 0.8820 provides a secondary floor. The indicators of Momentum reflect a modest praise: the relative force index of 14 days (RSI) stabilizes around the brand 55, while the MacD approaches a bull crossover. Right up, if the bulls grow above 0.8915, the next resistance could emerge around 0.8950, followed by the psychological barrier at 0.9000. Ventilation less than 0.8870 could exhibit 0.8820 and 0.8780 as support areas.
With a slight improvement in the feeling of risks, the support of the White House for car manufacturers and mixed American economic data, the USD / CHF remains biased upwards in the short term. However, wider movements will spend upcoming American economic versions and new developments related to trade.
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