Published on Apr 17, 2023

Daily Analysis For USD/CHF 17-04-2023

USD/CHF Analysis

Economic Events and Scenario for USD/CHF

Economic Events : -

GMT	Event	Impact	Currency
01:00	(Cyprus) Orthodox Easter Monday	None	EUR
01:00	(Greece) Orthodox Easter Monday	None	EUR
01:00	(Montenegro) Orthodox Easter Monday	None	EUR
01:01	(Ireland) Construction PMI	Low	EUR
02:30	(China) PBoC 1-Year MLF Announcement	Low	CNY
08:30	(Euro Area) ECB McCaul Speech	Low	EUR
09:00	(Italy) Harmonised Inflation Rate YoY	Low	EUR
09:00	(Italy) Inflation Rate YoY	Medium	EUR
09:00	(Italy) Harmonised Inflation Rate MoM	Low	EUR
09:00	(Italy) Inflation Rate MoM	Low	EUR
09:00	(Italy) CPI	High	EUR
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(China) FDI (YTD) YoY	Medium	CNY
10:00	(Euro Area) ECB Tuominen Speech	Low	EUR
10:30	(Germany) 12-Month Bubill Auction	Low	EUR
10:45	(European Union) EU Bond Auction	Low	EUR
10:45	(European Union) 10-Year Bond Auction	Low	EUR
11:00	(Slovakia) Unemployment Rate	Low	EUR
13:30	(Canada) Wholesale Sales MoM	Low	CAD
13:30	(Canada) Foreign Securities Purchases by Canadians	Low	CAD
13:30	(Canada) Foreign Securities Purchases	Low	CAD
13:30	(United States) NY Empire State Manufacturing Index	Medium	USD
14:00	(Belgium) Balance of Trade	Low	EUR
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
14:00	(United Kingdom) BoE Cunliffe Speech	Low	GBP
15:00	(United States) NAHB Housing Market Index	Medium	USD
16:00	(Euro Area) ECB President Lagarde Speech	Medium	EUR
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
21:00	(United States) Foreign Bond Investment	Low	USD
21:00	(United States) Net Long-term TIC Flows	Medium	USD
21:00	(United States) Overall Net Capital Flows	Low	USD

Today's Scenario: - The USD/CHF pair has continued to move upwards after a brief pullback to around 0.8940 during the early Asian trading session. The Swiss Franc has since bounced back and is on a bullish path towards the psychological resistance level of 0.9000. The trend in the major currency pair is in line with the US Dollar Index (DXY), which has also rebounded after a minor dip, as the Federal Reserve remains confident in its decision to continue hiking interest rates and is ignoring the possibility of a US recession.

As for the Swiss Franc, the Swiss National Bank (SNB) may soon put a stop to the country's inflation, as commercial banks have tightened their lending standards after the collapse of Credit Suisse.

Buy Scenario: - If the pair gains momentum, it needs to cross the downward-sloping resistance line from last Wednesday and the 100-EMA at 0.8955 and 0.8960, respectively. The 200-EMA hurdle around the psychological magnet of 0.9000 will also be a focus for the USD/CHF buyers. A gradual run-up towards challenging the monthly near 0.9200 can't be ruled out if the buyers keep the reins past 0.9000. Till we do not advise to buy USD/CHF.

Sell Scenario: - The USD/CHF pair is declining to 0.8945 as it reverses intraday gains. The pair is facing resistance at the 100-bar Exponential Moving Average (EMA) and a three-day-old resistance line, indicating a potential pullback. Additionally, the MACD signals and RSI (14) line are signaling a decrease in bullish bias. If the bearish momentum continues, the immediate support levels are at the previous resistance line from April 10 at 0.8905, followed by the 0.8900 round figure and the multi-month low of around 0.8860. Till we do not advise to sell USD/CHF.

Support and Resistance Level: -