On Tuesday, USD continued to grow insignificantly against CHF. USD was under pressure from macroeconomic statistics from the US, but the instrument managed to find a balance against the publication of controversial data from the eurozone.
US investors are waiting for Thursday when the head of the European Commission Jean-Claude Juncker will make another attempt to persuade Trump's administration not to impose 20% import duties on European cars and spare parts to them. If this fails, the EU prepares reciprocal duties on US goods. Currently, two options are considered: 20% for a number of goods totaling USD 10B, or 10% for goods totaling USD 18B.
On Wednesday, data on German IFO Business Climate indicator is expected. The indicator in July may decrease from 101.8 to 101.5 points reaching its minimum values since November 2012. Investors are frightened by the possibility of introducing new US export duties on EU-manufactured cars. They can seriously hit, above all, the German economy.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is narrowing, reflecting a change of trend in the short term. MACD is going down keeping a weak sell signal (located below the signal line). Stochastic, reaching its minimum levels, reverses upwards, indicating the risks associated with the oversold dollar.
One should wait for confirmation of the signals for a possible reverse of the instrument upwards.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.