USDCHF Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.14% | -12.7 Pips |  |
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| Week to-date | -0.74% | -65.4 Pips |  |
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| November | 2.15% | 185.9 Pips |  |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, economic data indicates a decline in housing market activity for October as per the Census Bureau’s report. Housing starts decreased to 1.311 million, down from a revised 1.353 million in September. This highlights a reduction of 42,000 in newly initiated housing projects. Building permits, a forward-looking indicator for the housing market, also witnessed a significant fall, dropping to negative 0.6 million from a revised figure of 1.425 million in September. The decline in both housing starts and building permits suggests a slowdown in the construction sector, which could possibly impact related industries and broader economic conditions.
Conversely, Switzerland experienced a notable contraction in its industrial production. According to the Federal Statistical Office (FSO), the industrial production in the secondary sector fell sharply to 3.5% in the third quarter, down from a revised figure of 7% in Q2. This marks a significant halving in growth within the sector, suggesting waning industrial activities and potential impact on economic performance. The downturn in industrial output could pose challenges for Switzerland’s economic resilience, demanding focused measures to stimulate recovery.
The USDCHF currency pair saw a decline of 0.14% on Tuesday, reaching 0.88213. The downturn in economic indicators from both the United States and Switzerland could have influenced this movement. For the USD, the bearish housing data reflects negatively on economic momentum, potentially suppressing the currency’s strength. In contrast, the weakness in Switzerland’s industrial production also indicates an economic slowdown, which might typically weaken the CHF. However, external factors such as market sentiment, risk aversion, and central bank policy expectations can also sway exchange rates. With such economic data painting a mixed picture, traders may exhibit cautious sentiment impacting the USDCHF movements.
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What can we expect from USDCHF today?
USDCHF on Tuesday dropped -0.14% to 0.88213. Price is above 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 0.87997 with break below could see further selling pressure towards S2 at 0.8778. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.88450 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.88007 would indicate selling pressure.
For the week to-date, take note that USDCHF is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.88883 |
| R2 | 0.88666 |
| R1 | 0.8844 |
| Daily Pivot | 0.88223 |
| S1 | 0.87997 |
| S2 | 0.8778 |
| S3 | 0.87554 |
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