USDCHF Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 1.01% | 85.4 Pips |  |
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| Week to-date | -0.08% | -6.6 Pips |  |
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| September | 0.39% | 33 Pips |  |
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Upcoming key events (London Time)
Thu 08:30 AM CHF SNB Interest Rate Decision (Policy Rate)
Thu 01:30 PM USD GDP annual rate Thu 02:20 PM USD Federal Reserve Chair Jerome Powell speech Fri 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
What happened lately
In the United States, new-home sales for August witnessed a decline of -4.7%, reversing the strong 10.6% growth observed in July. This contraction in the housing market could be attributed to a variety of factors, including higher interest rates or buyer caution amid economic uncertainties. Conversely, the U.S. House Price Index (HPI) for July showed a modest increase of 0.1%, improving from a slight decrease of -0.1% in June. The shift to positive growth in the HPI, as reported by the Federal Housing Finance Agency (FHFA), might suggest a stable, albeit slow, recovery in the housing market after previous declines.
In Switzerland, the ZEW Financial Market Survey for September reflected a downturn by dropping to -8.8 points from -3.4 points in August, as sourced from ZEW. This decline indicates worsening sentiment among financial market experts, who might be concerned about economic slowdown, political uncertainties, or other external factors impacting the Swiss economy. Such negative sentiment can lead to reduced investments and cautious business activities within the Swiss financial market.
The mixed economic signals from both the United States and Switzerland have impacted the USDCHF currency pair. On Wednesday, USDCHF rose by 1.01% to 0.85020. The decline in Swiss market sentiment indicated by the ZEW survey likely weakened the Swiss Franc, making the U.S. dollar stronger in comparison. Furthermore, the modest recovery in the U.S. House Price Index might have contributed positively to the USD. Traders and investors might also be positioning themselves ahead of significant upcoming events, such as the Swiss National Bank’s interest rate decision and pivotal U.S. economic data releases including the GDP annual rate, a speech by Federal Reserve Chair Jerome Powell, and the PCE Price Index excluding food and energy. These upcoming events are anticipated to create further volatility in the USDCHF pair, as decisions and data outcomes provide fresh insights into the respective economic health of the U.S. and Switzerland.
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What can we expect from USDCHF today?
USDCHF on Wednesday rose 1.01% to 0.85020. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCHF looks bullish as the pair ended higher after Wednesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.85345 with break above could target R2 at 0.8567 or figure level area. While towards the downside, we are looking at daily low of 0.84145 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.85070 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCHF is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.8627 |
| R2 | 0.8567 |
| R1 | 0.85345 |
| Daily Pivot | 0.84745 |
| S1 | 0.8442 |
| S2 | 0.8382 |
| S3 | 0.83495 |
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