USDCHF Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.62% | -56.3 Pips |  |
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| Week to-date | -0.23% | -21.1 Pips |  |
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| February | -1.28% | -116.5 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, recent economic data paints a mixed picture. Initial Unemployment Insurance Claims rose to 219,000 in the week ending February 15, up from 213,000 the previous week, indicating a slight weakening in the labor market. This increase suggests a modest rise in layoffs, which may reflect some economic softness. The U.S. Manufacturing Business Outlook Survey also showed a significant decline, dropping to 18.1 points in February from 44.3 points in January according to the Philadelphia Fed. This suggests a notable slowdown in manufacturing activity, potentially impacting overall economic growth. On the housing front, data was mixed. Building Permits for January showed a marginal increase to 1.483 million, slightly up from a revised 1.482 million in December. However, Housing Starts decreased significantly to 1.366 million from December’s revised figure of 1.515 million, indicating a slowdown in new home construction. These mixed indicators suggest uncertainties in different sectors of the U.S. economy.
The recent economic data from the United States has influenced the USDCHF currency pair. With an increase in unemployment claims and a pronounced decline in manufacturing outlook, there is a perception of weakening U.S. economic prospects. This could reduce investor confidence in the U.S. dollar, contributing to a downward pressure on USDCHF. The slight increase in building permits was not enough to offset the decline in housing starts, which also weighs on economic sentiment. As a result, on Thursday, USDCHF dropped by 0.62% to 0.89772. The lack of major upcoming events implies that traders will continue to digest this data, potentially setting a cautious tone for the currency pair in the immediate term.
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What can we expect from USDCHF today?
USDCHF on Thursday dropped -0.62% to 0.89772. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCHF looks bearish as the pair posted lower in Thursday trading session.
Looking ahead for the day, immediate support level is at S1 0.89502 with break below could see further selling pressure towards S2 at 0.89232. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.90462 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.89712 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 | 0.91002 |
| R2 | 0.90732 |
| R1 | 0.90252 |
| Daily Pivot | 0.89982 |
| S1 | 0.89502 |
| S2 | 0.89232 |
| S3 | 0.88752 |
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