- USD/CHF is down for the fourth day in a row amid broad-based USD weakness.
- Risk appetite weighs on safe-haven CHF and helps limit losses for the pair.
- The Fed’s dovish outlook supports expectations of some USD buying.
The pair USD/CHF now appears to have entered a bearish consolidation phasetrading in a range just a few pips above the two-week low around the area of ​​0.9270.
The pair continued its recent sharp pullback from the 0.9460 area, the highest level since April 2021, and continued to lose ground on the last day of the week. This marked the fourth consecutive day of negative movementalso the seventh of the previous eight, and is due to modest weakness in the US dollar.
Having said that, a positive tone around equity markets weighed on the safe-haven Swiss franc and offered some support to the USD/CHF pair. Apart from this, the increase in expectations for a 50 basis point Fed rate hike at the May policy meeting it acted as a tailwind for the dollar and helped limit further losses in the pair, at least for now.
It is worth mentioning that a number of influential members of the FOMC, including Fed Chairman Jerome Powell, left the door open for a further increase in borrowing costs to contain unacceptably high inflation. Speculation was further fueled by rising oil prices, which could continue to put upward pressure on already high consumer prices.
This, in turn, helped the benchmark 10-year US government bond yield hold steady near the 22-month high hit earlier this week, which should act as a tailwind for the USD. That said, the inability of the USD/CHF pair to attract any buying warrants some caution before positioning for any significant move higher.
Market participants now await the US economic calendar, which includes the release of the revised Michigan Consumer Sentiment Index and pending home sales data. However, the focus will remain on geopolitical developments. Aside from this, US bond yields will weigh on the USD and provide some momentum to the USD/CHF pair.
USD/CHF technical levels
USD/CHF
| Overview | |
|---|---|
| today last price | 0.927 |
| Today I change daily | -0.0032 |
| Today daily change % | -0.34 |
| Today they open every day | 0.9302 |
| Trends | |
|---|---|
| daily SMA20 | 0.929 |
| daily SMA50 | 0.9245 |
| daily SMA100 | 0.9229 |
| daily SMA200 | 0.921 |
| levels | |
|---|---|
| Previous daily high | 0.9345 |
| Previous Daily Low | 0.9299 |
| Previous Weekly High | 0.946 |
| Previous Weekly Low | 0.9314 |
| Previous Monthly High | 0.9297 |
| Previous Monthly Low | 0.915 |
| Daily Fibonacci 38.2% | 0.9317 |
| Daily Fibonacci 61.8% | 0.9328 |
| daily pivot point S1 | 0.9286 |
| daily pivot point S2 | 0.9269 |
| Daily Pivot Point S3 | 0.924 |
| daily pivot point R1 | 0.9332 |
| daily pivot point R2 | 0.9362 |
| daily pivot point R3 | 0.9378 |
Source: Fx Street
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