- USD/CHF recorded slight losses near 0.8970 after sharp falls on Friday.
- US bond yields rebound from multi-week lows.
- All eyes on the Fed spokespersons.
The pair USD/CHF It remained stable during the day on Monday, trading around 0.8970. The dynamics of the pair were marked by the rise in US bond yields, which benefited the Dollar, allowing it to gain traction, which limits the declines for the pair. For the rest of the session, no relevant data will be published in either the United States or Switzerland.
The US dollar is gaining momentum on Monday, after last week’s sharp decline, amid dovish bets from the Federal Reserve (Fed) following Wednesday’s decision. The Fed decided to keep rates steady at 5.25-5.50%, and Chairman Powell was seen hinting that monetary policy is coming to an end. In reaction, US Treasuries fell sharply, which favored the pair’s downward trajectory. The bearish trend was exacerbated by weak labor market data released on Friday, which reported a slowdown in US job creation in October and a rise in the unemployment rate.
On Monday, the 2.5-year and 10-year rates recovered from multi-week lows and rose to 4.90%, 4.58% and 4.64%, respectively, boosting the US dollar. For the rest of the week, the focus will be on several Fed officials, who will be in the air so that investors continue to place their bets on upcoming decisions. For now, CME’s FedWatch tool suggests that the odds of a 25 basis point hike have decreased by almost 10% for the next December meeting. Chairman Powell will speak on Wednesday.
USD/CHF Levels to watch
Analyzing the daily chart, the technical outlook for USD/CHF remains neutral to bearish as the bears continue to show signs of gaining ground in the near term. The Relative Strength Index (RSI) shows a slight negative slope in the bearish zone, while the Moving Average Convergence Histogram (MACD) shows lower green bars. Furthermore, the pair is below the 20-day and 200-day SMA, but above the 100-SMA, indicating that buyers continue to maintain momentum in the overall picture, maintaining some dominance over the sellers.
Supports: 0.8960, 0.8950, 0.8930.
Resistances: 0.9000 (convergence of 20- and 200-day SMAs), 0.9020, 0.9040.
USD/CHF Levels to watch
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
