- The dollar remains firm in the market in a context of risk aversion.
- Stocks fall in Europe and in Wall Street preview.
- USD/CHF rises for the eighth day in a row.
The USD/CHF continues to advance non-stop and is already eight days in a row, buoyed by a stronger dollar. The pair climbed to three-and-a-half-week highs at 0.9858. The Swiss franc has already erased much of the rally that followed the Swiss National Bank’s rate hike.
If the rises are extended, the pair’s next resistance is located at 0.9880, followed by 0.9910 and then 0.9935. In the opposite direction, at 0.9795 you can see the first support followed by 0.9745.
An increasingly firm dollar
After bottoming below 0.9500 at the end of June, the pair rose more than 350 pips. The expectation that the Federal Reserve will continue to raise the interest rate despite the global context is giving support to the greenback. DXY is trading neutral after hitting new decade highs above 108.50.
Fears of a global recession are triggered by the Russia/Ukraine war, COVID cases in China and rising rates.
As far as data is concerned, the economic calendar shows no impact reports for Tuesday. The speech of the president of the Richmond Federal Reserve, Thomas Barkin, stands out. On Wednesday it will be the turn of the US inflation figure for June, which will be key for the expectations of the Fed’s monetary policy. In May the annual rate was 8.6%.
Technical levels
Source: Fx Street
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