It’s another range-bound day for the major forex pairs so far, but we could see bigger moves during the release of US PMI numbers.
Check out these inflection points I see on USD/CHF.
Before we go any further, ICYMI, yesterday’s watchlist looked at GBP/USD breaking below the double neckline. Be sure to check if it’s still a good game!
And now for the main headlines that rocked the markets in the last trading sessions:
Headlines and recent economic data for the market:
Speaker of the US House of Representatives McCarthy says There is no debt limit agreement However, President Biden reiterated that default is off the table
Flash Manufacturing PMI in Australia unchanged at 48.0 in May, PMI flash services It decreased from an improved reading of 53.7 to 51.8 to reflect slowing industry expansion
Japan may release its Manufacturing PMI It improved from 49.5 to 50.8 to indicate the shift from contraction to industry growth
Bank of Japan core consumer price index It jumped from 2.9% to 3.0% y/y in April versus an expected drop to 2.8%, confirming the BoJ’s views on improving inflation.
May flash French manufacturing PMI improvement from 45.6 to 46.1 as expected, PMI flash services It dropped from a low-rated 54.6 to a score of 52.8 against a 54.0 consensus
May German releases Manufacturing PMI It decreased from the developed number of 44.5 to 42.2 against the expected 44.9, PMI flash services It rose from 56.0 to 57.8 vs. 55.0 expected to reflect stronger expansion
The UK may release its Manufacturing PMI It decreased from the developed number of 47.8 to 46.9 against an estimate of 47.9, PMI flash services It fell from a reading of 55.9 developed to 55.1 vs. 55.5 expected to indicate slower growth.
Price action news
The dollar pairs are still in a doze mode in the recent trading sessions, as market players may be waiting for more important updates from the debt ceiling negotiations.
So far, House Speaker McCarthy has made it clear that they haven’t reached an agreement on a debt limit just yet, even as President Biden has reiterated that default is off the table.
Meanwhile, some Republican negotiators say they don’t see much urgency from the White House. US Treasury Secretary Yellen reiterated that June 1 was the “hard deadline” for raising the debt ceiling.
During the European session, the dollar managed to squeeze some gains against the pound and the euro, as the UK and Eurozone posted mostly pessimistic PMI numbers.
US Manufacturing and Services PMIs at 1:45pm GMT
US New Home Sales at 2:00 pm GMT
US Richmond Manufacturing Index at 2:00 pm GMT
New Zealand Retail Sales at 10:45pm GMT
Use our new file Currency heat map To quickly see a visual overview of the forex market price movement! 🔥 🗺️
USD/CHF 15-minute forex Planned by TV
Take a look at this forex pair hovering around an area of interest!
The USDCHF pair is once again testing the support-turned-resistance area near the key psychological handle 0.9000, and it is still deciding whether to bounce or break.
If this continues as a ceiling, the pair could slide back to the pivot point (.8970) close to the previous day’s lows. Stronger bearish pressure might push it towards S1 (.8950) which has held as support for the past two days.
On the other hand, a break above the area of interest near R1 (0.9000) could initiate a move to the next uptrend barriers at R2 (.9030) or R3 (.9060).
USD/CHF is moving Average 67.1 points per dayso keep this number in mind when setting inputs and outputs.