Attention may turn to the Swiss franc’s ability to rebound as resistance levels strengthen
12.11.2024
- Germany's ZEW Current Conditions Index
- European Consumer Price Index
In yesterday's U.S. currency trading, the U.S. dollar rose against the euro.The EUR/USD pair fell from 1.0728 to 1.0628. It declined as it encountered resistance at the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 10-period MA is currently capping the upside, and on the daily chart, the RSI has dropped to around 33. Since prices have already stagnated near the lows set in April of this year, we should pay close attention to price movements during European trading hours.
Among European currencies, the Swiss franc was particularly weak. The USD/CHF pair rose from 0.8745 to 0.8809, surging sharply from the vicinity of the 75-period moving average on the hourly chart. On the 4-hour chart, the price has already reached the +2σ level of the Bollinger Bands, and on the daily chart, it is on the verge of breaking above the resistance zone formed by the 200-period simple moving average.
Today’s schedule includes the Australian Westpac Consumer Confidence Index at 8:30, Japan’s Money Supply at 8:50, the Australian NAB Business Conditions Index at 9:30, the UK Unemployment Rate and the Eurozone Consumer Price Index at 16:00, the German ZEW Current Conditions Index at 19:00, and India’sIndustrial Production, at 8:00 PM the US NFIB Small Business Optimism Index, at 9:00 PM Brazil’s Retail Sales, at 11:30 PM Canada’s Building Permits, at 12:00 AM remarks by Fed Governor Waller, and at 1:30 AM the US 3-month Treasury bill auction. We will be watching for signs of a recovery in the Swiss franc, which has been facing resistance on the upside.
Author: Keisuke Sakurai
