USD/CHF remains stable near 0.9600

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  • 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.

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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.

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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.

Technical levels

USD/CHF

Panorama
Last Price Today 0.9614
Today’s Daily Change 0.0018
Today’s Daily Change % 0.19
Today’s Daily Opening 0.9596
Trends
20 Daily SMA 0.9709
50 Daily SMA 0.9736
100 Daily SMA 0.9522
200 Daily SMA 0.937
levels
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

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