US stocks declining.
The USDCHF moved higher on the back of the better US data today and in the process extended above the swing area between 0.9231 and 0.92414. The next target was the July 1, July 2 and July 7 highs between 0.9267 and 0.92742. The high price just reached 0.9270 and backed off.
Stocks moving lower (all three indices are now negative) has helped to also put a lid on the rise. The CHF can be a safe haven during equity declines. The pair has been trending higher today, but there may be some cause for pause from a technical perspective and from the perspective of weaker stocks.
If the price starts to move back to the downside, the aforementioned swing area between 0.92317 and 0.92414 would be the target support. The market will have to make a decision if that area is tested.
PS although stocks are moving back to the downside, the pattern over trading this week has been quite volatile, with ups and downs. Nevertheless the bias is more negative overall with the pattern of selling the higher openings.
PSS Yields remain higher but off their highest levels. The tenure yield is at 1.334% after trading as high as 1.351% (and as low as 1.294%).
