USDCHF sell-off continues for the third consecutive day on weak ISM manufacturing PMI. The U.S. ISM Manufacturing PMI came in at 50.1 below the market consensus of 50.5 in February. The ISM Manufacturing Prices Paid came in at 45.9, below the forecasts of 51. The ISM Manufacturing Employment Index registered in at 46.9 beating the expectations of 46.6 in February. The Construction Spending came in at 1.8%, above the estimates of 0.7% in January.
Investors run away from the U.S. Dollar amid the expectations of an interest rate cut. Fed is expected to cut the interest rates in a move to offset the negative impact of the coronavirus spread in the U.S and global economy.
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USDCHF technical outlook is clearly bearish as the pair breached below all major daily moving Averages amd makes seven consecutive lower lows and lower highs.
On the downside, immediate support stands at 0.9543 the daily low. Next level on the downside for bears will be met at 0.9526 the low from April 10th 2018. The next support level stands at 0.9462 the low from March 28th 2018.
On the flipside initial resistance will be met at 0.9655 the daily top. Friday’s high at 0.9695 is the next resistance area. A critical resistance stands at 0.9731 the 50-day moving average.