It was expected that the US statistics would show the all published indicators positive dynamics. The July producer price index (PPI) was supposed to show a slowdown, still with the month growth by 0.1% m/m after a 0.4% m/m in June, the industrial production release in the same month was expected with increase by 0.4% m/m vs. 0.3% m/m in June and the University of Michigan consumer sentiment preliminary index was expected with an increase over the August last period to the level of 94.0 from the previous level of 93.3.
The US dollar consolidated in the pair with the Swiss franc after its decline to the support near 0.9750. Earlier the pair rebounded from the resistance level of 0.9850.
The price is finding the first support at 0.9750, the next one is at 0.9540. The price is finding the first resistance at 0.9850, the next one is at 0.9960.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”.
The MACD indicator is in a negative territory. The price is consolidating.
We advise to consider short positions with the first target - 0.9750. After fixing below the first target, the level 0.9650 will become the next one. The buyers need to break above 0.9850 for a steady growth.