. USD/CHF at 0.8750 Amid Swiss GDP Expectations and Powell's Speech

USD/CHF at 0.8750 Amid Swiss GDP Expectations and Powell’s Speech

USD/CHF at 0.8750 Amid Swiss GDP Expectations and Powell’s Speech

01 Dec 2023

Ahead Of Swiss GDP Statistics, The USD/CHF Pair Consolidates Near 0.8750 With A Negative Tone.

Fundamental Overview:

  • USD/CHF consolidates in anticipation of Swiss GDP data, with expectations for the country’s Gross Domestic Product to maintain stability at 0.5%.
  • Investors are also looking forward to Federal Reserve Chair Jerome Powell’s speech scheduled for Friday.

In the Asian session on Friday, USD/CHF lingers around 0.8750, retracing Thursday’s gains. The decrease in the US Dollar (USD) exerts pressure on the USD/CHF pair, driven by the potential conclusion of interest rate hikes by the US Federal Reserve (Fed).

On Thursday, Swiss Real Retail Sales saw a 0.1% decline in October, falling short of the anticipated 0.2% growth. The subdued consumer demand in Switzerland could potentially impact the Swiss Franc (CHF). Additionally, attention is directed towards the Gross Domestic Product (GDP) data scheduled for release on Friday.

Yet, Thomas Jordan, Chairman of the Swiss National Bank (SNB), has previously acknowledged the potential for future interest rate increases, providing support to bolster the CHF.

The US Dollar Index (DXY) encounters a hurdle with subdued reactions from US bond yields, offsetting recent advancements. At the present moment, the DXY trades lower at 103.30. The Greenback may have benefitted from varied US data, contributing to its recent gains.

Investors are anticipating the unveiling of the US ISM Manufacturing PMI for November and are keenly observing the speech scheduled for Friday by Jerome Powell, the Chairman of the US Federal Reserve (Fed).

USD/CHF Technical Analysis Daily Chart:

Technical Overview

USD/CHF is currently trading within a down channel.

USD/CHF is positioned below the 20&50 Moving Averages (SMA).

The Relative Strength Index (RSI) is in the selling zone, while the Stochastic oscillator suggests a neutral trend.

Immediate Resistance level: 0.8820

Immediate support level: 0.8741

How To Trade USD/CHF

Following a substantial rise, USD/CHF encountered resistance, leading to a sharp decline. Presently, the price is hovering around a crucial support zone, and a breach of this zone could potentially lead to further downside movements.

TRADE SUGGESTION- STOP SELL– 0.8720, TAKE PROFIT AT- 0.8617, SL AT- 0.8787.