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- The US dollar is trading near the critical support zone, where the US dollar index (DXY) is reflected in the training course before the US -Chinese talks in Switzerland this week.
- Federal reserve officials highlighted the risk of recession, noting the possibility of high inflation and unemployment if the definitions remain high.
- Technically, DXY faces immediate support at 100.2200 and resistance at 101.9000, while USD/ChF can test its lowest levels if the dollar is weak.
The USD/CHF pair moves to a critical turn because it is trading near the main support level, with morale in the broader market in the market due to uncertainty in commercial conversation. the US dollar The DXY index, which tracks the dollar for a basket of six main currencies, has recently returned to 100.3000 after it reached the highest level in the month 100.8600. This reflection comes at a time when the markets are digesting the implications of commercial talks between the United States of Chinese specified this week in Switzerland, as well as concerns about a faded trade deal in the UK that failed to remove the main definitions. Despite the hopes of a penetration, the American position appears to be weaker, as President Trump indicates that the customs tariff can be reduced by 50 % if China cooperates, although this is still uncertain.
From a basic perspective, the Federal Reserve is still cautious about the economist Expectations. Federal Reserve officials, including the President of the Federal Reserve in New York John Williams, stressed the need for prices to stabilize, while the ruler Adriana Kogler indicated that the current political position is “somewhat restricted”, which hints that prices may remain high despite the slowdown. In addition, the ATLANTA FED team recently reviewed the Q2 GDPNow model to 2.3 % SAAR, which reflects strong growth expectations, although the risk of stagnation remains with the continued definitions in disrupting global supply chains.
Technical analysis
Technically, the DXY tests support at 100.2200, a previous resistance level that can serve as a rule if the emotional feelings persist. Below this, the following support lies at 97,7300, with deeper levels at 96.9400, 95.2500 and 94.5600 if the negative side compressing is condensed. On the upper side, the resistance is seen at 101.9000, followed by SMA for 55 days at 102.4700. to USD/CHFThe rest, less than the last support, can open the door to its lowest fresh levels, with possible targets about 0.8900 and 0.8800 if the broader feeling of US dollars remains weak.
