USD/CHF declines to multi-week lows around 0.8960

USD/CHF declined to it lowest level since September 20, to a daily low of 0.8957.
The Swiss currency is the best performer in the session.
The USD holds its foot after mixed Housing market figures, eyes on the Fed’s Beige book.

Patricio Martín FXStreet

In Wednesday’s session, the USD/CHF declined to its lowest level in over a month, below 0.8957 and then settled around 0.8970. On the one hand, the CHF is the top performer of the session, trading with gains against the EUR, GBP, JPY and USD. On the other hand, the green currency gained some ground ahead of the anticipated Federal Reserve (Fed) Beige book report and after mixed Housing data. On the Swiss side, nothing relevant was released during the European session.

The US Dollar measured by the DXY Index edged higher, reaching around 106.40, reflecting a modest 0.20% increase for the day. On the data front, Building Permits for September surpassed expectations at 1.475M, while Housing Starts fell short of expectations at 1.358M, showing a mixed housing scenario.

The upcoming release of the Fed's Beige Book is anticipated to offer a clearer perspective on US economic activity and labour market conditions, important for investors to continue placing their bets for the next Fed’s decisions. Meanwhile, US yields are observing a slight uptick, with the 2-year, 5-year, and 10-year rates climbing to 5.20%, 4.87%, and 4.86%, respectively, showing that markets may be gearing up for one last hike by the Fed in 2023. According to the CME FedWatch tool, the probability of a 25 basis points hike during the December meeting has risen to approximately 42%, while a pause in November is near to be priced in.

USD/CHF Levels to watch

The daily chart analysis indicates a neutral to bearish outlook for USD/CHF, as the bears show signs of taking control but still face challenges ahead.The Relative Strength Index (RSI) points south below its middle point, while the Moving Average Convergence (MACD) histogram exhibits larger red bars. Furthermore, the pair is below the 20 and 200-day Simple Moving Averages (SMAs), but above the 100-day SMA, implying that the bears have more work to do to confirm a bearish trend.

Support levels: 0.8950, 0.8930, 0.8900 (100-day SMA).

Resistance levels: 0.9015 (200-day SMA), 0.9040, 0.9070.

USD/CHF Daily Chart

USD/CHF

Overview
Today last price	0.8977
Today Daily Change	-0.0025
Today Daily Change %	-0.28
Today daily open	0.9002

Trends
Daily SMA20	0.9096
Daily SMA50	0.895
Daily SMA100	0.8905
Daily SMA200	0.9019

Levels
Previous Daily High	0.9032
Previous Daily Low	0.899
Previous Weekly High	0.9124
Previous Weekly Low	0.8987
Previous Monthly High	0.9225
Previous Monthly Low	0.8795
Daily Fibonacci 38.2%	0.9016
Daily Fibonacci 61.8%	0.9006
Daily Pivot Point S1	0.8984
Daily Pivot Point S2	0.8966
Daily Pivot Point S3	0.8942
Daily Pivot Point R1	0.9026
Daily Pivot Point R2	0.905
Daily Pivot Point R3	0.9068

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.