• USD/CHF takes offers to refresh intraday low and extend the previous day’s losses.
  • US Dollar bears approach the six-month low marked last week amid dovish concerns over FOMC amidst Fed blackout.
  • Market sentiment remains dicey ahead of multiple US data, including Advance readings of Q4 GDP.

USD/CHF stands on slippery grounds as it drops to 0.9170 during Thursday’s Asian session. The Swiss Franc (CHF) pair renews its intraday low to extend the previous day’s pullback from the weekly high.

The quote’s latest south run seems to take the clues from the broad US Dollar weakness and upbeat Swiss data. That said, the Swiss Zew Survey – Expectations improved to the highest levels since March 2022 while flagging the -40.0 figure versus -47.6 expected and -42.8 prior.

On the other hand, the US Dollar Index (DXY) remained on the back foot while bracing for the third consecutive weekly loss around 101.65 as hopes of a dovish Federal Open Market Committee (FOMC) grew stronger. “Traders broadly expect the Fed to increase rates by 25 basis points (bps) next Wednesday, a step down from a 50 bps increase in December,” said Reuters.

It should be noted that dicey markets and a lack of major data/events, not to forget the Fed blackout period and Chinese holidays, also allowed the USD/CHF bears to keep the reins. While portraying the mood and taking clues from the mixed earnings report, Wall Street closed mixed, and the US Treasury bond yields remained sidelined near 3.45.

Moving on, a slew of US data will entertain the USD/CHF traders even if the Fed policymakers’ absence from the podium tests momentum. Among them, the first readings of the US fourth quarter (Q4) Gross Domestic Product (GDP), expected to print annualized growth of 2.6% versus 3.2% prior, will be crucial amid the recession talks. The US Durable Goods Orders for December and the Q4 Personal Consumption Expenditure (PCE) data will also be important.

Also read: US Gross Domestic Product Preview: Three reasons to expect a US Dollar-boosting outcome

Technical analysis

A clear downside break of the one-week-old ascending trend line, now resistance near 0.9250, directs USD/CHF towards the yearly low marked in the last week around 0.9085.

Additional important levels

Overview
Today last price 0.9172
Today Daily Change -0.0056
Today Daily Change % -0.61%
Today daily open 0.9228
 
Trends
Daily SMA20 0.9253
Daily SMA50 0.9336
Daily SMA100 0.9584
Daily SMA200 0.9637
 
Levels
Previous Daily High 0.928
Previous Daily Low 0.9192
Previous Weekly High 0.9288
Previous Weekly Low 0.9085
Previous Monthly High 0.9471
Previous Monthly Low 0.9201
Daily Fibonacci 38.2% 0.9246
Daily Fibonacci 61.8% 0.9226
Daily Pivot Point S1 0.9187
Daily Pivot Point S2 0.9146
Daily Pivot Point S3 0.91
Daily Pivot Point R1 0.9274
Daily Pivot Point R2 0.9321
Daily Pivot Point R3 0.9362

 

 

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