USD/CHF trades just below 200 DMA amid sluggish USD


Share:
  • USD/CHF drops to a fresh multi-month low amid the emergence of fresh USD selling.
  • Diminishing odds for a later Fed rate hike in September continue to weigh on the USD.
  • The risk-on mood undermines the safe-haven CHF and helps limit any further downside.

The USD/CHF pair witnesses selling for the fourth successive day and drops to a four-month low during the first half of the European session. Spot prices, however, show some resilience below the 0.9400 mark and quickly recover around 20 pips in the last hour.

The US dollar struggles to capitalize on the previous day's bounce and remains sluggish near its lowest level since late June touched in the aftermath of softer US consumer inflation figures on Wednesday. This, in turn, exerts some downward pressure on the USD/CHF pair, though sustained weakness below the 0.9400 mark is needed to confirm a bearish breakdown below a technically significant 200-day SMA.

The weaker-than-expected US CPI report forced investors to scale back expectations for a larger 75 bps Fed rate hike move in September. That said, the overnight hawkish comments by Fed officials should act as a tailwind for the greenback. Apart from this, a generally positive tone around the equity markets seems to undermine the safe-haven swiss franc and limit losses for the USD/CHF pair, at least for now.

The Fed, meanwhile, is still expected to hike interest rates by 50 bps points at the September policy meeting. This, in turn, supports prospects for the emergence of some dip-buying around the USD and further warrants some caution for aggressive bearish traders. Market participants now look forward to the US Producer Price Index (PPI) for a fresh impetus later during the early North American session.

Technical levels to watch

USD/CHF

Overview
Today last price 0.941
Today Daily Change -0.0020
Today Daily Change % -0.21
Today daily open 0.943
 
Trends
Daily SMA20 0.9619
Daily SMA50 0.9675
Daily SMA100 0.9631
Daily SMA200 0.9429
 
Levels
Previous Daily High 0.9545
Previous Daily Low 0.9394
Previous Weekly High 0.9652
Previous Weekly Low 0.9471
Previous Monthly High 0.9886
Previous Monthly Low 0.9502
Daily Fibonacci 38.2% 0.9452
Daily Fibonacci 61.8% 0.9487
Daily Pivot Point S1 0.9368
Daily Pivot Point S2 0.9305
Daily Pivot Point S3 0.9216
Daily Pivot Point R1 0.9519
Daily Pivot Point R2 0.9608
Daily Pivot Point R3 0.9671

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD holds steady near 1.0800 ahead of Fed Minutes

EUR/USD holds steady near 1.0800 ahead of Fed Minutes

EUR/USD fluctuates in a narrow channel at around 1.0800 in the European trading hours on Wednesday after closing the fifth consecutive day in positive territory on Tuesday. The US Dollar stays resilient against its rivals and limits the pair's upside FOMC Minutes.

EUR/USD News

GBP/USD consolidates gains above 1.2600

GBP/USD consolidates gains above 1.2600

GBP/USD consolidates Tuesday's gains and trades above 1.2600 in the European session on Wednesday. The pair struggles to gain traction amid a resurgent US Dollar demand as risk sentiment turns sour. The focus now shifts to the Fed Minutes, BoE- and Fed-speak.

GBP/USD News

Gold stabilizes near $2,030, eyes on FOMC Minutes

Gold stabilizes near $2,030, eyes on FOMC Minutes

Gold clings to marginal daily gains at around $2,030 on Wednesday after closing the first two days of the week in positive territory. The benchmark 10-year US Treasury bond yield edges lower ahead of FOMC Minutes, helping XAU/USD hold its ground.

Gold News

Bitcoin is 23% away from ATHs, but retail is still not here, why?

Bitcoin is 23% away from ATHs, but retail is still not here, why?

Bitcoin’s journey so far has been nothing short of shocking. From ETF approval to countries warming up to crypto regulation, the crypto landscape seems to have changed quite a bit.

Read more

Fed Minutes Preview: Markets to scrutinize comments over timing of interest-rate cuts

Fed Minutes Preview: Markets to scrutinize comments over timing of interest-rate cuts

The Federal Reserve (Fed) will release the minutes of the January policy meeting on Wednesday. Investors will pay close attention to comments regarding the inflation outlook and the possible timing of a policy pivot.

Read more

Forex MAJORS

Cryptocurrencies

Signatures