USD / CHF recovers further from month-long lows amid notable USD strength

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  • USD / CHF rallied well from nearly a month lows amid resurgent USD demand.
  • USD bulls were unaffected by Powell’s dovish testimony and falling US bond yields.
  • The nerves of COVID-19 could prop up the safe haven CHF and kept any significant hikes limited.

The pair USD/CHF it rose to new daily highs, around the 0.9175 region during the early days of the American session and has now reversed a significant part of the previous day’s losses.

After an initial drop to nearly a month’s lows, the USD / CHF pair experienced a solid rebound from the 0.9120-15 region and was supported by a strong rally in demand for the US dollar. Despite dovish testimony from Fed Chairman Jerome Powell on Wednesday, investors appear convinced that the US central bank will adjust its policy earlier than expected amid mounting inflationary pressures. This, in turn, was seen as a key factor that acted as a tailwind for the dollar and extended some support to the pair.

Meanwhile, USD bulls largely ignored the ongoing decline in US Treasury yields and the US macro mixed releases on Thursday. Data released by the U.S. Department of Labor (DOL) revealed that there were 360,000 initial claims for unemployment benefits during the week ending July 10 compared to the prior week’s revised upward reading of 386,000. On the other hand, the New York Fed manufacturing index improved sharply to 43 in June, while the Philadelphia Fed manufacturing index fell more than expected to 21.9.

However, concerns about the spread of the highly contagious Delta variant of the coronavirus continued to weigh on investor sentiment, evidenced by a weaker tone in equity markets. This could extend some support to the safe-haven Swiss franc and keep any wild rallies limited for the USD / CHF pair, at least for now. Therefore, any subsequent upward movement is more likely to face stiff resistance and remain capped near the weekly swing highs, around 0.9200. This should act as a key point for short-term traders and help determine the next leg of a directional move for the USD / CHF pair.

Technical levels

USD/CHF

Panorama
Today’s Last Price 0.9172
Today’s Daily Change 0.0027
Today’s Daily Change% 0.30
Today’s Daily Opening 0.9145
Trends
SMA of 20 Daily 0.9195
SMA of 50 Daily 0.9079
SMA of 100 Daily 0.9161
200 SMA Daily 0.9071
Levels
Daily Previous Maximum 0.9199
Daily Previous Minimum 0.9142
Weekly Preview Maximum 0.9268
Weekly Prior Minimum 0.9133
Monthly Previous Maximum 0.9262
Minimum Previous Monthly 0.8926
Daily Fibonacci 38.2% 0.9164
Daily Fibonacci 61.8% 0.9177
Daily Pivot Point S1 0.9125
Daily Pivot Point S2 0.9105
Daily Pivot Point S3 0.9068
Daily Pivot Point R1 0.9182
Daily Pivot Point R2 0.9218
Daily Pivot Point R3 0.9238

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