• Fed’s Powell: It is possible our rate rises could cause a recession.
  • SNB's Jordan: We may need to raise rates again.
  • USD/CHF approaches May and June lows.

After trading in a range during many sessions, USD/CHF broke to the downside falling below 0.9600, for the first time in two weeks. The US dollar weakened across the board during the American session amid an improvement in risk sentiment and lower US yields.

Key support emerges

The break under 0.9620 triggered more losses. So far USD/CHF bottomed at 0.9579, the lowest level since June 3. As of writing, it is hovering around 0.9600. The negative tone persists and the pair could test the area of the May and June lows around 0.9540.

The US dollar weakened across the board in American hours as market sentiment improved. Main US stocks indexes bounced sharply after a negative opening and are gaining by 0.45% on average. Despite stock turning positive, US yield printed fresh lows and contribute to weakening the dollar.

Fed Chair Powell is presenting the semiannual monetary policy report to Congress. He said that rate hikes won’t bring food and gas prices down. He added Fed’s rate hikes could cause a recession.

Earlier, Swiss National Bank President Thomas Jordan mentioned the central bank may need to raise interest rates again. Last week, the SNB surprised markets with an increase in its policy rate from -0.75% to -0.25%.

Technical levels

USD/CHF

Overview
Today last price 0.9592
Today Daily Change -0.0069
Today Daily Change % -0.71
Today daily open 0.9661
 
Trends
Daily SMA20 0.9716
Daily SMA50 0.9719
Daily SMA100 0.9495
Daily SMA200 0.9357
 
Levels
Previous Daily High 0.9684
Previous Daily Low 0.9632
Previous Weekly High 1.005
Previous Weekly Low 0.9619
Previous Monthly High 1.0064
Previous Monthly Low 0.9545
Daily Fibonacci 38.2% 0.9652
Daily Fibonacci 61.8% 0.9664
Daily Pivot Point S1 0.9634
Daily Pivot Point S2 0.9607
Daily Pivot Point S3 0.9582
Daily Pivot Point R1 0.9686
Daily Pivot Point R2 0.9711
Daily Pivot Point R3 0.9738

 

 

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