Usdchf drops 0.92% amid anticipation of US economic data releases

USDCHF Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.92%	-75.9 Pips
Week to-date	-0.7%	-57.9 Pips
April	-7.07%	-625 Pips

Upcoming key events (London Time)

Wed 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
Wed 01:30 PM USD GDP annual rate

What happened lately

The US economy is expected to release significant data, particularly the PCE Price Index, excluding food and energy, and the GDP annual rate. The Personal Consumption Expenditures (PCE) Price Index is crucial as it provides insights into consumer inflation, excluding volatile food and energy prices, and guides the Federal Reserve’s monetary policy decisions. A higher-than-expected PCE reading could indicate rising inflationary pressures, potentially leading to stricter monetary policy. The GDP annual rate will offer a comprehensive overview of economic growth, with higher growth indicating a robust economy, potentially fueling further inflation concerns. These high-impact economic indicators are set for release on Wednesday at 1:30 PM, which will provide critical insight into the US economic trajectory.

On Monday, USDCHF saw a significant decline, depreciating by 0.92% to 0.81950. This movement reflects a substantial shift owing potentially to market anticipations and participant positioning ahead of crucial economic releases. The upcoming reports on the US economy are likely to directly impact the USDCHF pair, given their importance in shaping investor sentiment. If the PCE Price Index and GDP data suggest a strong economy with rising inflation, the US dollar might see a resurgence as expectations of future rate hikes increase. Conversely, weaker-than-expected data could lead to continued depreciation of the dollar, reinforcing the current downtrend of the USDCHF pair. Overall, traders and investors will be closely monitoring these data points, considering them vital in determining the next direction for the USDCHF exchange rate.

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What can we expect from USDCHF today?

USDCHF on Monday dropped -0.92% to 0.81950. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDCHF looks bearish as the pair posted lower in Monday trading session.

Looking ahead for the day, immediate support level is at S1 0.81511 with break below could see further selling pressure towards S2 at 0.81073. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.83186 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.81910 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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