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USD/CHF recovers part of heavy intraday losses, remains below 0.9300

  • USD/CHF attracts some buying on dips near the 0.9230 zone and pares some of its intraday losses.
  • Fears of turbulence in the banking sector support the pair amid a modest rebound in the USD.
  • The risk averse state could shore up the CHF’s safe haven and stop any significant rally.

The pair USD/CHF recovers more than 50 points from the daily low and is now trading just below 0.9300 during the early American session, down 0.45% for the day.

Initially, the Swiss franc reacted positively, forcing the USD/CHF pair to reverse some of the previous day’s huge rally, after Credit Suisse announced that it will exercise an option to borrow up to $54 billion from the Swiss National Bank ( SNB) to shore up liquidity. However, initial optimism fades rather quickly as markets are still trying to determine if fears of a systemic crisis have allayed.

Apart from this, a modest US dollar recovery from the daily low, supported by mostly upbeat US macro data, helps the USD/CHF pair to attract some buying near the 0.9230-0.9225 region. The US Department of Labor reported that initial claims for jobless benefits fell to 192,000 during the week ending March 10, from 212,000 previously. In addition, US housing market data also beat market estimates.

To a large extent, this helps offset the disappointing release of the Philadelphia Fed Manufacturing Index, which came in at -23.2 for the current month against expectations for an improvement to -14.5 from -24.3 prior. This, coupled with expectations that the Federal Reserve will hike rates by at least 25 basis points next week, acts as a tailwind for the dollar and provides some support for the USD/CHF pair.

That being said, the current risk-off environment, reflected in the prolonged decline in equity markets, could prop up the CHF as a safe haven and curb any significant USD/CHF rally, at least for now. Therefore, it will be prudent to wait for strong follow-through buying before positioning for an extension of this week’s strong rebound from the lowest level since early January.

Technical levels to watch

USD/CHF

Overview
Last price today 0.9279
Today Change Daily -0.0052
today’s daily variation -0.56
today’s daily opening 0.9331
Trends
daily SMA20 0.9316
daily SMA50 0.926
daily SMA100 0.938
daily SMA200 0.9553
levels
previous daily high 0.9338
previous daily low 0.9123
Previous Weekly High 0.9439
previous weekly low 0.9175
Previous Monthly High 0.9429
Previous monthly minimum 0.9059
Fibonacci daily 38.2 0.9256
Fibonacci 61.8% daily 0.9205
Daily Pivot Point S1 0.919
Daily Pivot Point S2 0.905
Daily Pivot Point S3 0.8976
Daily Pivot Point R1 0.9405
Daily Pivot Point R2 0.9479
Daily Pivot Point R3 0.962

Source: Fx Street

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