USDCHF Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.92% | -83.9 Pips |  |
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| Week to-date | -0.31% | -28.2 Pips |  |
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| February | -0.59% | -53.5 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
The U.S. labor market showed signs of cooling in December, reflected by a decrease in job openings to 7.6 million as reported by the Job Openings and Labor Turnover Survey (JOLTS). This figure marks a notable decline from November’s revised 8.156 million. Such a decrease may suggest a tightening labor market or a cautious hiring approach from employers, possibly influenced by economic uncertainties. Concurrently, U.S. new orders for manufactured goods dropped by 0.9% in December. This follows a declining trend from the previous month, which saw a revised decrease of 0.8% after initially being reported as a 0.4% decline. The consistent downtrend in manufacturing orders could indicate a slowdown in industrial activity, potentially impacting growth forecasts.
The recent economic data from the U.S., highlighting reductions in both job openings and manufacturing orders, may add to the concerns about potential slowing economic momentum. Such a slowdown can exert bearish pressure on the U.S. dollar, as investors might anticipate reduced inflationary pressures and therefore less aggressive monetary policy tightening by the Federal Reserve. As a result, the USDCHF had already experienced a drop of 0.92% to 0.90402, reflecting market sentiment and expectations surrounding the U.S. economy. The absence of major economic events further suggests that current market movements will likely continue to be influenced by existing data and broader risk sentiment. The observed weakening in USDCHF could persist if sentiment does not shift or if additional weak economic indicators emerge.
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What can we expect from USDCHF today?
USDCHF on Tuesday dropped -0.92% to 0.90402. 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 0.90077 with break below could see further selling pressure towards S2 at 0.89753. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.91312 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.90370 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 | 0.91961 |
| R2 | 0.91637 |
| R1 | 0.91019 |
| Daily Pivot | 0.90695 |
| S1 | 0.90077 |
| S2 | 0.89753 |
| S3 | 0.89135 |
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