USDCHF Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.21% | -18.5 Pips |  |
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| Week to-date | -0.52% | -45.4 Pips | |
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| November | 0.04% | 3.1 Pips |  |
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Upcoming key events (London Time)
Thu 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
What happened lately
In the United States, the new orders for manufactured goods saw an improvement in September, registering a decline of -0.5% compared to a -0.8% decrease recorded in the previous month, August. This positive change, albeit still a decline, indicates a slight uptick in the demand for manufactured goods, which could be reflective of stabilizing market conditions. The Census Bureau reports this data as a part of their effort to provide insights into the manufacturing sector’s performance, which is a crucial component of the U.S. economy. Improving figures in new orders could eventually support industrial production growth if sustained in the following months.
Regarding the USDCHF currency pair, it experienced a drop of -0.21% on Tuesday, closing at 0.86392. This movement could be attributed to the current economic news and speculation about upcoming market events. With the Federal Reserve Interest Rate Decision scheduled for Thursday at 07:00 PM, market participants might be positioning themselves in anticipation of this high-impact event. Changes in interest rates can significantly affect currency values, including the USDCHF, as interest rates directly influence investors’ sentiment and capital flows.
A potential adjustment in the Federal Funds Rate can lead to increased volatility for the USDCHF pair. If the Federal Reserve decides to maintain or increase the rate, the U.S. dollar might strengthen due to higher yield expectations, potentially reversing some of the recent losses against the Swiss Franc. Conversely, if the rate remains unchanged or is decreased, the USD might weaken further. Therefore, traders and investors are likely to keep a close eye on this decision as it will provide critical insights into the future direction of the U.S. monetary policy and its consequent impact on the currency markets.
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What can we expect from USDCHF today?
USDCHF on Tuesday dropped -0.21% to 0.86392. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCHF looks bearish as the pair posted lower in Tuesday trading session.
Looking ahead for the day, immediate support level is at S1 0.8621 with break below could see further selling pressure towards S2 at 0.86029. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.86465 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.86156 would indicate selling pressure.
For the week to-date, take note that USDCHF is bearish as the pair posted lower by -0.52%.
Key levels to watch out:
| R3 | 0.86828 |
| R2 | 0.86647 |
| R1 | 0.86519 |
| Daily Pivot | 0.86338 |
| S1 | 0.8621 |
| S2 | 0.86029 |
| S3 | 0.85901 |
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