- US Dollar consolidates near highs with bears contained at 0.9075.
- Easing geopolitical fears and monetary policy divergence are weighing on the CHF.
The US dollar regained lost ground on Friday following risk aversion caused by Israel's drone attack on Iran, and the USD/CHF pair continued to consolidate on Monday, with bears contained above 0.9075.
Moderating risk appetite amid geopolitical fears and declining US Treasury yields have dampened demand for dollars. The US Dollar Index, which measures the price of the dollar against a basket of the six most traded currencies, has remained virtually sideways in the absence of fundamental data.
The risks of the Middle East conflict turning into a regional war, involving Iran, have moderated, at least for now, and that is likely to keep demand for the safe-haven Swiss franc limited.
In the US, investors have already priced in that the Fed will delay the start of monetary easing and, most likely, also reduce its size, and are looking for more clues about the Fed's policy plans. In this regard, Thursday's US first-quarter gross domestic product and price index PCE on Friday will be analyzed with special interest.
USD/CHF Price Analysis: Technical Outlook
Technical indicators show that the uptrend is still active, with no clear signs of a trend reversal in sight, apart from some bearish divergence on the RSI on the 4-hour chart. Immediate support at 0.9075 is closing the way towards the key 0.8980 – 0.9000 zone, where the late March lows and trendline support lie.
To the upside, a break of 0.9143 would resume the uptrend and pave the way for a retest of the November high at 0.9240.
USD/CHF Daily Chart
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.
