Usdchf slightly down on Monday amid consolidation ahead of key US economic events

USDCHF Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.02%	-1.9 Pips
Week to-date	-0.07%	-6.3 Pips
February	0.16%	15 Pips

Upcoming key events (London Time)

Tue 03:00 PM USD Federal Reserve Chair Jerome Powell testifies
Wed 01:30 PM USD CPI Inflation Rate (12-mth)
Wed 01:30 PM USD CPI Inflation Rate excluding Food and Energy sectors (12-mth)

What happened lately

The United States economy is poised for key announcements in the upcoming days with a particular focus on the testimony from Federal Reserve Chair Jerome Powell and the release of the Consumer Price Index (CPI) inflation rate. On Tuesday, Powell’s testimony is anticipated to provide insights into the Federal Reserve’s perspective on economic conditions and potential policy adjustments. Following that, on Wednesday, important data on the CPI inflation rate, including a measure that excludes the volatile food and energy sectors, will be available. These high-impact events are crucial as they can determine the market’s expectations on interest rate adjustments and provide an economic outlook.

For Switzerland, no major economic news or announcements are expected in the immediate future, implying that the USDCHF currency pair will likely be influenced more by developments in the U.S. economic narrative rather than domestic factors in Switzerland. Provided the primary influences are from the U.S., traders and investors might remain cautious, focusing on the outcomes of the U.S. data releases.

Regarding the USDCHF currency pair, it saw a small decrease of 0.02% to 0.91087 on Monday, indicating it is in a consolidation phase. This minor drop suggests that the market is in a state of anticipation, awaiting imminent developments. If Jerome Powell’s testimony or the CPI figures convey a dovish tone or lower than expected inflation, the USD could weaken further, potentially causing USDCHF to decline as traders might seek safe-haven investments like the Swiss Franc. Conversely, a hawkish tone or higher inflation data could strengthen the USD, leading to a rise in USDCHF. Traders might exercise caution, analyzing these events closely to adjust their positions accordingly.

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What can we expect from USDCHF today?

USDCHF on Monday dropped -0.02% to 0.91087. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.90939 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.91220 or trades above daily pivot 0.9108. Break above could target R1 at 0.91227. While to the downside, we are looking at 0.90939 (S1) and daily low of 0.90932 as support levels. USDCHF need to break on either side to indicate a short-term bias. A close below 0.90932 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:

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