USDCHF Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | -0.01% | -0.9 Pips |  |
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| Week to-date | 0.45% | 40.4 Pips |  |
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| February | -0.6% | -55 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the economic indicators for January presented a mixed picture. Building Permits saw a minor increase, reaching 1.483 million from December’s revised figure of 1.482 million, indicating a slight uptick in future construction activity. However, Housing Starts experienced a significant decline to 1.366 million, down from 1.515 million the previous month. This suggests a slowdown in new building projects, potentially due to seasonal factors or caution among builders in response to economic uncertainties. On the positive side, the New York Empire State Manufacturing Index for February showed substantial improvement, rising to 5.7 points from January’s negative -12.6 points. This bounce-back indicates a potential recovery in manufacturing activity, which could contribute positively to economic growth.
In Switzerland, industrial production in the secondary sector showed a decrease in the fourth quarter. The annual growth rate slowed to 2.3% from 3.5% in the previous quarter. This deceleration reflects challenges faced by the industrial sector, possibly due to global supply chain issues or reduced demand affecting output. While the sector remains in growth territory, the reduced pace points to headwinds that could impact Switzerland’s overall economic performance.
The USDCHF currency pair dropped slightly by 0.01% to 0.90387, indicating a consolidation phase. The mixed data from the U.S., with weak housing starts but a strong manufacturing index, provide limited directional cues for the USD. Conversely, the slowdown in Switzerland’s industrial production adds subtle pressure on the Swiss Franc. Without major events to influence the currencies, the USDCHF pair may continue consolidating until more decisive economic data prompts clearer movements. The U.S. manufacturing uptick could support the USD slightly, while Switzerland’s industrial slowdown weighs modestly on the CHF. Hence, the balance between these factors seems to maintain the exchange rate in a narrow range.
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What can we expect from USDCHF today?
USDCHF on Wednesday dropped -0.01% to 0.90387. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.90228 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.90550 or trades above daily pivot 0.90389. Break above could target R1 at 0.90548. While to the downside, we are looking at 0.90228 (S1) and daily low of 0.90230 as support levels. USDCHF need to break on either side to indicate a short-term bias. A close below 0.90230 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 | 0.90868 |
| R2 | 0.90709 |
| R1 | 0.90548 |
| Daily Pivot | 0.90389 |
| S1 | 0.90228 |
| S2 | 0.90069 |
| S3 | 0.89908 |
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