USDCHF Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | -0.44% | -39.6 Pips |  |
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| Week to-date | -0.64% | -57.8 Pips |  |
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| February | -0.91% | -83.1 Pips | |
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Upcoming key events (London Time)
Fri 01:30 PM USD Nonfarm Payroll Employment
What happened lately
The recent economic report for the United States reveals a decline in job openings and new orders for manufactured goods. Specifically, the U.S. Job Openings and Labor Turnover Survey (JOLTS) showed that job openings decreased to 7.6 million in December, falling from 8.156 million in November. This indicates a contraction in the labor market as the number of available positions shrinks. Similarly, new orders for manufactured goods experienced a downward trend, dropping by 0.9% in December, following a preceding decline of 0.4% in November, according to the Census Bureau. Initially reported as a smaller decrease, the revised data suggests a more pronounced weakening in manufacturing demand. These figures suggest that the U.S. labor market and manufacturing sector are facing headwinds, potentially reflecting broader economic challenges.
The impacts of such economic data are profound on the USDCHF currency pair. The data indicates a weakening of the U.S. economic landscape due to contractions in both labor and manufacturing sectors. As investors look at these indicators closely, expectation of softer economic growth might lead to a perception of reduced demand for the U.S. dollar. Consequently, this perception can lead to lower buying interest in the currency, prompting traders to move towards safer havens such as the Swiss Franc. The fall in job openings and manufacturing orders suggests that the USDCHF could continue its downward trend, as seen with the recent drop of 0.44% to 0.90106. Additionally, attention is now on the upcoming Nonfarm Payroll Employment report, which is of high significance, as it may further influence market sentiments towards the U.S. dollar. Any indication of weakness in this report could exacerbate the downtrend for USDCHF, reinforcing the preference for the Swiss Franc amidst market instability. Conversely, a positive surprise in the employment report may provide support to the U.S. dollar, potentially stabilizing USDCHF if it counterbalances the current economic concerns.
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What can we expect from USDCHF today?
USDCHF on Wednesday dropped -0.44% to 0.90106. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCHF looks bearish as the pair posted lower in Wednesday trading session.
Looking ahead for the day, immediate support level is at S1 0.89881 with break below could see further selling pressure towards S2 at 0.89656. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.90593 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.90012 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 | 0.91043 |
| R2 | 0.90818 |
| R1 | 0.90462 |
| Daily Pivot | 0.90237 |
| S1 | 0.89881 |
| S2 | 0.89656 |
| S3 | 0.893 |
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