- USD/CHF reversed an intraday buy on Monday and broke above the 0.9600 level again.
- A positive risk tone undermined the CHF haven and extended some support to the pair.
- The modest dollar weakness failed to impress bullish traders and kept any further upside limited.
The pair USD/CHF attracted some buying at the 0.9560 area on Monday and recaptured the daily high in the middle of the European session, although it did not follow through. The pair was last seen around the 0.9600 mark, well below the one-week high reached on Friday.
Signs of stability in financial markets undermined demand for haven assets, including the Swiss franc, which turned out to be a key factor extending some support to the USD/CHF pair. That said, the appearance of some selling around the US dollar failed to impress bullish traders or give the pair any significant momentum.
Investors remain concerned that rapidly rising interest rates and tightening financial conditions will challenge global economic growth. In addition, the ongoing war between Russia and Ukraine and the latest outbreak of COVID-19 in China have fueled concerns about a potential economic downturn, dragging US bond yields to a multi-week low.
Elsewhere, the CHF continued to receive support from the Swiss National Bank’s surprise on June 16, when it unexpectedly raised interest rates by 50 basis points to rein in rising inflation. This warrants caution before positioning for a significant rise in the USD/CHF pair amid relatively lower trading volume due to a US holiday.
Investors were also wary, preferring to wait for a new catalyst in the release of this week’s FOMC policy meeting minutes on Wednesday. Aside from this, the closely awaited monthly US Employment Report (NFP) will influence USD price dynamics and help determine the short-term trajectory of the USD/CHF pair.
|Last Price Today||0.9614|
|Today’s Daily Change||0.0018|
|Today’s Daily Change %||0.19|
|Today’s Daily Opening||0.9596|
|20 Daily SMA||0.9709|
|50 Daily SMA||0.9736|
|100 Daily SMA||0.9522|
|200 Daily SMA||0.937|
|Previous Daily High||0.9642|
|Previous Daily Minimum||0.9543|
|Previous Maximum Weekly||0.9642|
|Previous Weekly Minimum||0.9495|
|Monthly Prior Maximum||1,005|
|Previous Monthly Minimum||0.9495|
|Daily Fibonacci 38.2%||0.9604|
|Daily Fibonacci 61.8%||0.9581|
|Daily Pivot Point S1||0.9546|
|Daily Pivot Point S2||0.9495|
|Daily Pivot Point S3||0.9447|
|Daily Pivot Point R1||0.9644|
|Daily Pivot Point R2||0.9692|
|Daily Pivot Point R3||0.9743|
Source: Fx Street