USDCHF Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.05% | 4.3 Pips |  |
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| Week to-date | 0.26% | 23.1 Pips |  |
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| February | -0.75% | -68.1 Pips |  |
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Upcoming key events (London Time)
Wed 07:00 PM USD FOMC Meeting Minutes
What happened lately
In the United States, the New York Empire State Manufacturing Index saw a significant increase in February, rising to 5.7 points from a previous -12.6 points in January. This rebound indicates an improvement in manufacturing activity within the state of New York, marking a positive shift in business conditions for manufacturers. The rise suggests increased demand and better economic conditions that are likely supporting manufacturers. An index above zero traditionally indicates growth within the sector, pointing to potential positive impacts on employment and investment associated with manufacturing.
In Switzerland, the latest data from the Federal Statistical Office revealed a decline in industrial production within the secondary sector for the fourth quarter. Year-on-year growth decelerated to 2.3%, compared to 3.5% observed in the third quarter. This downturn signifies a slowdown within Switzerland’s industrial sector, which could reflect declining demand or production challenges. The moderate growth, despite being positive, suggests potential concerns over industrial sector stability, possibly impacted by broader economic influences or external factors affecting Switzerland’s export-driven economy.
The recent economic news affects the USDCHF exchange rate in several ways. The improvement in the U.S. manufacturing index signals better economic performance in the U.S., which can bolster confidence in the U.S. Dollar and create upward pressure on the USDCHF currency pair. Meanwhile, the slowdown in Swiss industrial production growth could decrease investor confidence in the Swiss Franc, thereby strengthening the relative position of the USD. The anticipation of the upcoming FOMC meeting minutes, a high-impact event, could further influence market volatility and expectations, potentially leading to increased USD strength in light of positive economic data and adjustments in monetary policy expectations. This brewing combination may drive further appreciation of the USDCHF pair.
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What can we expect from USDCHF today?
USDCHF on Tuesday rose 0.05% to 0.90214. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCHF looks bullish as the pair ended higher after Tuesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.90434 with break above could target R2 at 0.90653 or figure level area. While towards the downside, we are looking at daily low of 0.89951 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.90412 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCHF is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.90895 |
| R2 | 0.90653 |
| R1 | 0.90434 |
| Daily Pivot | 0.90192 |
| S1 | 0.89973 |
| S2 | 0.89731 |
| S3 | 0.89512 |
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