Usdchf consolidates as mixed US housing data weighs on sentiment

USDCHF Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.02%	1.7 Pips
Week to-date	0.05%	4 Pips
March	-2.16%	-195.3 Pips

Upcoming key events (London Time)

Thu 12:30 PM USD GDP annual rate

What happened lately

In the United States, new-home sales experienced a rebound in February with a 1.8% increase, following a significant decline of 6.9% in January, which was revised from an initially reported drop of 10.5%. This improvement in the housing sector suggests a potential recovery in consumer confidence and economic activity, as the housing market is often a bellwether for the broader economy. However, the U.S. House Price Index for January showed a decrease to 0.2% from 0.5% in the previous month. This reduction indicates a cooling in house price growth, which may reflect changes in market dynamics and could have implications for homebuyers and sellers.

With regard to the USDCHF currency pair, the U.S. economic data presents a mixed impact. The positive development in new-home sales may provide support to the U.S. dollar, as it signals potential economic resilience. However, the decline in the House Price Index suggests a moderation in housing market appreciation, potentially tempering investor enthusiasm. As the housing market holds substantial sway over economic health, these mixed signals may lead to continued consolidation for the USDCHF pair. Traders and investors will be closely watching upcoming events, such as the U.S. GDP annual rate announcement, for further direction. A stronger than expected GDP growth figure could bolster the USD, leading to potential appreciation against the Swiss franc, whereas weaker data may pressure USDCHF downward.

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What can we expect from USDCHF today?

USDCHF on Tuesday rose 0.02% to 0.88280. 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 0.88232 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.88320 or trades above daily pivot 0.88276. Break above could target R1 at 0.88324. While to the downside, we are looking at 0.88232 (S1) and daily low of 0.88228 as support levels. USDCHF need to break on either side to indicate a short-term bias. A break above 0.88320 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:

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