The USDCHF pair, currently trading at 0.88426, is experiencing a decline and is now hovering around 0.8830 due to the unsatisfactory Swiss GDP results.
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- USD/CHF trades lower around 0.8830 in the face of disappointing Swiss GDP.
The pair currently trades last at 0.88426.
The previous day high was 0.8864 while the previous day low was 0.8795. The daily 38.2% Fib levels comes at 0.8838, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8821, expected to provide support.
USD/CHF snaps the two-day winning streak, trading lower around 0.8830 during the early trading hours in the European session on Monday. The Swiss Franc (CHF) is experiencing upward support despite Switzerland’s downbeat Gross Domestic Product (GDP) (QoQ) for the second quarter.
The Swiss GDP declined to 0.0% against the market consensus of 0.1%, which was reported at 0.3% in the previous quarter. Additionally, the modest data from the United States (US) is exerting downward pressure on the USD/CHF pair, as it reinforces the likelihood of no interest rate adjustment by the US Federal Reserve (Fed) in the September meeting.
Furthermore, the renewed trade tensions between the US and China could potentially favor the traditional safe-haven Swiss Franc (CHF) and pose a challenge for the USD/CHF pair. On Sunday, US Commerce Secretary Gina Raimondo emphasized that there are “legitimate concerns” regarding Chinese investments in the United States. Raimondo also underscored the necessity of taking robust measures to safeguard the nation’s national security.
During the China International Fair for Trade in Services (CIFTIS) in Beijing, Chinese President Xi Jinping announced that China would promote the integrated growth of high-end manufacturing and modern service industries, as reported by Reuters.
However, the downward trajectory of the USD/CHF pair may be restrained as investors are still factoring in the probability of a quarter basis points (bps) rate hike by the Fed. This anticipation continues to provide support for the USD/CHF pair, curbing its potential losses.
US Dollar Index (DXY), which measures the performance of the Greenback against six other major currencies, retreating from the recent gains. Spot prices are beating lower around 104.10 at the time of writing. As mentioned earlier, the US downbeat employment data weighed on the greenback. Even so, the improved yields on US Treasury bonds exerted upward support to the US Dollar (USD), which closed the previous week at 4.18%.
US Nonfarm Payrolls data showed improvement in August, with a reading of 187,000, higher than the market consensus of 170,000 and the previous reading of 157,000. Average Hourly Earnings (Aug) declined to the rate of 4.3%, which was anticipated to remain consistent at 4.4% prior.
Technical Levels: Supports and Resistances
USDCHF currently trading at 0.8837 at the time of writing. Pair opened at 0.8857 and is trading with a change of -0.23 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8837 |
| 1 | Today Daily Change | -0.0020 |
| 2 | Today Daily Change % | -0.2300 |
| 3 | Today daily open | 0.8857 |
The pair is trading above its 20 Daily moving average @ 0.8796, above its 50 Daily moving average @ 0.8783 , below its 100 Daily moving average @ 0.8882 and below its 200 Daily moving average @ 0.9067
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8796 |
| 1 | Daily SMA50 | 0.8783 |
| 2 | Daily SMA100 | 0.8882 |
| 3 | Daily SMA200 | 0.9067 |
The previous day high was 0.8864 while the previous day low was 0.8795. The daily 38.2% Fib levels comes at 0.8838, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8821, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.8814, 0.877, 0.8745
- Pivot resistance is noted at 0.8882, 0.8907, 0.8951
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8864 |
| Previous Daily Low | 0.8795 |
| Previous Weekly High | 0.8865 |
| Previous Weekly Low | 0.8745 |
| Previous Monthly High | 0.8876 |
| Previous Monthly Low | 0.8690 |
| Daily Fibonacci 38.2% | 0.8838 |
| Daily Fibonacci 61.8% | 0.8821 |
| Daily Pivot Point S1 | 0.8814 |
| Daily Pivot Point S2 | 0.8770 |
| Daily Pivot Point S3 | 0.8745 |
| Daily Pivot Point R1 | 0.8882 |
| Daily Pivot Point R2 | 0.8907 |
| Daily Pivot Point R3 | 0.8951 |
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