- The USD/CHF rebounded at the 0.8900 area, rising to a high towards 0.8935, seeing 0.15% gains.
- The CHF was the best-performing currency in Thursday, and the pair lost nearly 0.85%.
- The economic calendar has nothing relevant to offer, and focus shifts to the Middle East.
On Friday, the USD/CHF sellers seemed to be consolidating their gains, and the pair found support at the 100-day Simple Moving Average (SMA) at 0.8900, rising to a high near 0.8935 and then settling ar 0.8915.
On the USD side, it struggles to gather momentum and trades soft against its rivals. That being said, as all eyes will be set on the Middle East in the conflict between Israel and Palestine, the green currency may find demand on safe-haven flows. For the next week, the highlight will be the S&P Manufacturing PMI from the US from October, where investors will get a clearer outlook from the US economy. This week, Industrial Production and Retail Sales from September came in higher than expected, and the Federal Reserve’s (Fed) Beige book report described the economy as “stable”.
In addition, Chair Powell highlighted on Thursday that higher bond yields, contributing to tighter financial conditions, will be considered for the next decisions. However, he still opened the door for further tightening, and the bank will proceed “carefully”.
USD/CHF Levels to watch
Upon evaluating the daily chart, a neutral to bearish outlook is seen, with the balance starting to lean in favour of the bears. However, a healthy technical correction shouldn’t be ruled out by traders.
The Relative Strength Index (RSI) maintains a negative slope in the bearish territory, while the Moving Average Convergence (MACD) histogram presents increasing red bars. Those indicators stand near oversold territory, favouring the case of an upward correction in the next sessions. Additionally, the pair is above the 20-day Simple Moving Average (SMA), below the 200-day SMA, but above the 100-day SMA, suggesting that the bears still have some work to do to confirm a bearish bias.
Support levels: 0.8900 (100-day SMA), 0.8870, 0.8850.
Resistance levels: 0.890,0.9015 (200-day SMA), 0.9040.
USD/CHF Daily Chart
-638334195495850051.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.