USD/CHF bears attack mid-0.8900s as US Dollar retreats ahead of inflation clues


  • USD/CHF clings to mild losses during the first negative day in three.
  • Market sentiment dwindles amid mixed headlines about China, US.
  • Risk catalysts can entertain Swiss France traders ahead of US inflation clues, central bank traders.

USD/CHF holds lower grounds at the intraday bottom surrounding 0.8950 as bears defend the first daily loss in three heading into Monday’s European session. In doing so, the Swiss Franc (CHF) pair sellers cheer the broad US Dollar retreat amid cautiously optimistic markets.

US Dollar Index (DXY) pares the first weekly gain in four around 102.70 as it bears the burden of mild optimism surrounding China and receding geopolitical fears from Russia. Furthermore, consolidation ahead of this week’s US inflation clues and central bankers’ speeches also exerts downside pressure on the DXY.

That said, the weekend headlines suggesting sooner China stimulus join doubts about Russian President Vladimir Putin’s power in Moscow to underpin mildly positive sentiment. Alternatively, S&P’s recent downbeat China GDP forecasts and hawkish Fed concerns prod the market’s risk-on mood.

It should be noted that Fed Chair Jerome Powell’s testimony during the previous week renewed hawkish bias about the US Federal Reserve’s (Fed) move. On the same line were upbeat US PMIs and comments favoring two rate hikes from Federal Reserve Bank of San Francisco President Mary Daly.

Alternatively, Swiss National Bank (SNB) Chairman Thomas Jordan said in an interview aired by Swiss broadcaster SRF on Saturday, per Reuters, that SNB's recent interest rate hike was ‘very likely not quite’ enough to get a grip on inflation in Switzerland.

Against this backdrop, the S&P500 Futures rebound from the lowest levels in a week toward regaining the 4,400 round figure, up 0.20% intraday near 4,398 at the latest. That said, the US 10-year Treasury bond yields remain sidelined near 3.73%, after snapping a two-week downtrend, whereas the two-year counterpart braces for the fourth consecutive weekly winning streak near 4.74% by the press time.

Looking ahead, a light calendar in India emphasizes the US inflation data and the speeches of the top-tier central bankers at the European Central Bank (ECB) Forum as the key catalysts.

Technical analysis

USD/CHF extends the previous day’s U-turn from a two-week-old descending resistance line, around 0.9010 by the press time. Additionally favoring the Swiss France buyers past 0.9010 is the 200-Hour Moving Average (HMA), close to 0.8970, as well as the bearish MACD signals.

Additional important levels

Overview
Today last price 0.8957
Today Daily Change -0.0017
Today Daily Change % -0.19%
Today daily open 0.8974
 
Trends
Daily SMA20 0.9021
Daily SMA50 0.898
Daily SMA100 0.9098
Daily SMA200 0.9323
 
Levels
Previous Daily High 0.9013
Previous Daily Low 0.8944
Previous Weekly High 0.9013
Previous Weekly Low 0.8907
Previous Monthly High 0.9148
Previous Monthly Low 0.882
Daily Fibonacci 38.2% 0.8987
Daily Fibonacci 61.8% 0.8971
Daily Pivot Point S1 0.8941
Daily Pivot Point S2 0.8908
Daily Pivot Point S3 0.8872
Daily Pivot Point R1 0.901
Daily Pivot Point R2 0.9046
Daily Pivot Point R3 0.9078

 

 

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