USD/CHF Plummets to 0.9350 Amidst Swiss GDP and US ISM Manufacturing PMI Data
During the early Tokyo session, the USD/CHF currency pair plummeted from just above 0.9421 and is currently finding support at 0.9350. The CHF is expected to remain steady ahead of the Swiss GDP (Q4) release and US ISM Manufacturing PMI data. While the Swiss economy is forecast to decline by 1.2% YoY, the US manufacturing PMI is predicted to improve from 47.4 to 48, indicating a reduction in contraction.
As the S&P 500 rebounds from last week’s decline, investor risk appetite has increased, with the volatility of the Dollar Index (DXY) decreasing to near 104.25.
After failing to maintain its rally above the horizontal barrier established at approximately 0.9410 from the high on January 6, the USD/CHF pair has corrected downward. The currency is expected to exhibit reduced volatility before it makes new gains.
At 0.9361 and 0.9316, respectively, the 20-period and 50-period EMAs for the asset help meet the positive criteria. However, the Relative Strength Index (14) has fallen into the bearish range of 40.00-60.00, indicating a loss of upward momentum.
Once the asset breaks above the February 27 high of 0.9429, a new uptrend could commence, leading to highs of 0.9456 on December 6 and 0.9500 on November 25. If the asset falls below the 0.9161 low recorded on February 9, it could drop below the 0.9100 support and reach the February low of 0.9059.
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