USD/CHF Eyes Supply Zone as Traders Await Key US Economic Releas

24 Okt

The USD/CHF pair is trading around 0.8656 during early European trading hours on Thursday. The Swiss Franc (CHF) faces pressure as expectations for another interest rate cut by the Swiss National Bank (SNB) at its December meeting grow, potentially providing further room for USD/CHF to appreciate.

US Economic Data in Focus
The spotlight today is on the upcoming US economic releases, which are likely to play a crucial role in shaping the short-term direction of the USD/CHF pair. The market anticipates key data releases, including Initial Jobless Claims and S&P Global PMI figures, scheduled for later in the US session.

Analysts expect jobless claims to rise towards the 250,000 mark, signaling potential softness in the US labor market. If the data confirms this increase, the USD could face selling pressure, which might impact the pair negatively. A bearish reaction in the USD could strengthen the CHF, countering any bullish momentum in USD/CHF.

Technical Outlook
From a technical standpoint, USD/CHF is currently hovering within a supply area, where retail sentiment remains bullish. This setup warrants caution, as the outcome of the US data releases could shift sentiment quickly. A weak US economic report could see USD/CHF testing lower levels, while stronger-than-expected data may sustain the current bullish sentiment.

Traders are advised to wait for confirmation from the US data before taking a position, as the pair’s next move hinges on how market participants interpret the economic signals. Patience is key as the data unfolds, potentially paving the way for a clearer entry point in USD/CHF.

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