Forex: USD/CHF falls to 0.9250 as US data gets published

FXstreet.com (Barcelona) - The 0.9300 handle gave in to downside pressure during the European morning and breached below the psychological level. The market is extending the fall on the publication of the US ADP report, reaching as low as 0.9248 but being able to find support at 0.9250.

The US ADP employment report came in lower than expected, at 119K in April instead of the 150K expected, also with the March figure being revised lower from 158K to 131K. Next in line is US manufacturing PMI in April. For the ISM we see a slight downside risk and are looking for an outcome of 50.4 (mkt 50.7), which would leave the ISM at its lowest level since November 2012”, wrote TD Securities analyst Annette Beacher, expecting a shift to an easing bias on the FOMC meeting due to the rising uncertainty about the impact of fiscal austerity on growth and further moderation in core inflationary pressures.

Mortgage applications in the US have risen 1.8% in the week ending at April 26, following a 0.2% improvement in the prior week.

“At this point a deeper retracement to 0.9269/41 is likely– this is the 78.6% retracement of the last led higher in April and the 2013 support line”, wrote Commerzbank analyst Karen Jones. “0.9383/90 (November and January highs) to alleviate immediate downside pressure and re-target the 0.9596 10 month downtrend”, she added.