Should we keep a close eye on the price movements of the USD/CHF pair, which appears to be forming a triple top?
09.08.2022
- U.S. 3-Year Treasury Auction
- U.S. NFIB Small Business Optimism Index
Yesterday, the U.S. dollar fell slightly against both the euro and the yen. The USD/JPY pair dropped by about 120 pips from 135.578 to 134.357. During today’s Asian trading session, it has been trading in a range around 134.852.With tomorrow’s U.S. CPI release approaching, the market as a whole is adopting a wait-and-see stance. However, since the 4-hour chart shows solid support at the 20-day moving average, we will be watching to see if the downside remains firm heading into tomorrow.
Among European currencies, the Swiss franc has remained firm against the U.S. dollar, with the USD/CHF pair falling approximately 110 pips from 0.9633 to 0.9521.Since USD/CHF has formed a clear triple top on the daily chart, we will closely monitor whether it breaks below the neckline at 0.9521 and continues lower. If it does break lower, we will initially set the 200-day SMA at 0.9411 as our target.
Today, during European trading hours, the Hungarian Consumer Price Index will be released at 4:00 p.m., followed by the CanadianLeading Economic Index at 19:00, the U.S. NFIB Small Business Optimism Index at 19:00, and Mexico’s Consumer Price Index and Producer Price Index at 20:00. During U.S. trading hours, the U.S. Q2 Nonfarm Productivity is scheduled for 21:30, and a U.S. 3-year Treasury auction is set for 26:00. I intend to closely monitor price movements in USD/CHF, which appears to be forming a triple top.
Author: Keisuke Sakurai
