USD/CHF drifting into the low side towards 0.8800 ahead of next week's US GDP, CPI & PCE inflation


  • The US Dollar waffled against the Swiss Franc on Friday, stuck near the 0.8820 level.
  • The USD/CHF is on pace to drop back into the 0.8800 handle.
  • Next week sees US GDP and CPI inflation numbers.

The USD/CHF tracked lower on Friday as broader markets saw an uptick in risk appetite to close out the trading week, bringing the US Dollar (USD) down into familiar lows against the Swiss Franc (CHF) with the 0.8800 handle in full view.

The pair traded mostly flat for the week with a brief push into a high of 0.8874 while Friday saw the week's low etched in at 0.8811.

Next week sees a relatively sedate economic calendar before high-impact US data hits markets in the mid-week, with US Gross Domestic Product (GDP) scheduled for Wednesday and Personal Consumption Expenditure (PCE) inflation figures slated for Thursday.

An array of US market data due in the latter half of next week

Annualized US quarterly GDP is expected to tick upwards slightly from 4.9% to 5.0%, and US PCE for the month of October is forecast to drop slightly from 0.3% to 0.2%.

Next week will close out market action with Swiss quarterly GDP and US ISM Purchasing Managers' Index (PMI) numbers both slated for Friday, December 1st.

Swiss GDP is broadly expected to hold flat for the third quarter at 0.0%, while the US ISM Manufacturing PMI for November is forecast to tick upwards from 46.7 to 47.6.

Federal Reserve (Fed) Chairman Jerome Powell will also be making an appearance next Friday. The head of the Fed will be participating in an informal discussion labeled "Navigating Pathways to Economic Mobility" at the Spelman College of Atlanta.

USD/CHF Technical Outlook

The USD/CHF's Friday dip sets the pair up for a fresh downside run at the 0.8800 handle, and technical support is looking thin in the near-term, with the nearest firm barrier seen at July's low bids near 0.8550.

On the top end, a series of lower highs is drawing in a descending trendline from October's early swing high into 0.9250, which looks set to provide technical resistance looking ahead.

The 200-day Simple Moving Average (SMA) is trending down below just below the major 0.9000 handle, capping off any strong topside bullish recoveries, while the 50-day SMA is rotating into a bearish stance from just above 0.9000.

USD/CHF Daily Chart

USD/CHF Technical Levels

USD/CHF

Overview
Today last price 0.882
Today Daily Change -0.0022
Today Daily Change % -0.25
Today daily open 0.8842
 
Trends
Daily SMA20 0.8962
Daily SMA50 0.9014
Daily SMA100 0.8894
Daily SMA200 0.8984
 
Levels
Previous Daily High 0.8855
Previous Daily Low 0.8817
Previous Weekly High 0.9052
Previous Weekly Low 0.8853
Previous Monthly High 0.9244
Previous Monthly Low 0.8888
Daily Fibonacci 38.2% 0.884
Daily Fibonacci 61.8% 0.8832
Daily Pivot Point S1 0.8821
Daily Pivot Point S2 0.8801
Daily Pivot Point S3 0.8784
Daily Pivot Point R1 0.8859
Daily Pivot Point R2 0.8876
Daily Pivot Point R3 0.8896

 

 

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