Should we be wary of resistance in the Swiss franc?
19.09.2023
- European Consumer Price Index
- Switzerland: Trade Balance
In yesterday's U.S. currency trading, the U.S. dollar fell against the euro ahead of tomorrow's FOMC meeting. The EUR/USD pair rose from 1.0654 to 1.0697, breaking above the 20-period moving average on the 4-hour chart with a real body candle.On the weekly chart, the pair has rebounded from the 1.0625 support level, suggesting a potential upward trend for the time being. However, caution is warranted, as a break below the 1.0625 support level during tomorrow’s FOMC meeting could signal a shift in the trend.
Among European currencies, the Swiss franc fell against the yen ahead of today’s trade balance release. The CHF/JPY pair dropped from 164.911 to 164.311. It has been trading below the 20-day moving average for the past week or so.On the weekly chart, the pair continues to move along the +2σ line of the Bollinger Bands, and divergence is observed as the RSI has exceeded the overbought level of 70. With the BOJ meeting this weekend, we should remain vigilant to see if the franc will continue to weaken against the yen.
Today, at 3:00 PM, Switzerland’s trade balance; at 5:00 PM, the Eurozone’s current account balance; at 5:30 PM, Hong Kong’s unemployment rate; at 6:00 PM, the Eurozone’s consumer price index; at 7:00 PM, Israel’s GDP;at 9:30 PM, Canada’s Consumer Price Index, U.S. Housing Starts, and U.S. Building Permits; at 2:00 AM, the U.S. 20-year Treasury auction; at 2:45 AM, remarks by BOC Deputy Governor Kozicki; and at 7:45 AM the following day, New Zealand’s Q2 Current Account. We should remain highly vigilant regarding the resistance facing the Swiss franc.
Author: Keisuke Sakurai
