USD/CHF clings to gains above 0.9200 mark amid notable USD strength

A broad-based USD strength assisted USD/CHF to gain traction for the second straight day.
Fed tightening worries, a strong pickup in the US bond yields continued underpinning the USD.
Strong opening in the US equity markets weighed on the safe-haven CHF and remained supportive.

Haresh Menghani FXStreet

The USD/CHF pair climbed to over one-week tops during the early North American session, albeit quickly retreated few pips thereafter. The pair was last seen trading around the 0.9215 region, still up nearly 0.25% for the day.

The pair built on the previous day's modest gains and edged higher for the second consecutive session on Tuesday. The uptick allowed pushed the USD/CHF pair back closer to over two-month tops touched last week and was sponsored by a broad-based US dollar strength.

Despite mixed signals on the US inflation, investors have been betting on the prospects for an early move by the Fed to tighten its monetary policy. This, along with a strong pickup in the US Treasury bond yields, underpinned the greenback and provided a goodish lift to the USD/CHF pair.

Bulls further took cues from a strong opening in the US equity markets, which tends to dent demand for traditional safe-haven currencies, including the Swiss franc. That said, fears over the spread of the highly infectious Delta variant of the coronavirus capped gains for the USD/CHF pair.

Market participants now look forward to the release of the Conference Board's US Consumer Confidence Index, which might influence the USD price dynamics. Traders will further take cues from the broader market risk sentiment for some trading opportunities around the USD/CHF pair.

The key focus, however, will remain on Friday's release of the closely watched US monthly jobs data. The popularly known NFP report will play a key role in driving the greenback in the near term and help determine the next leg of a directional move for the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9218
Today Daily Change	0.0024
Today Daily Change %	0.26
Today daily open	0.9194

Trends
Daily SMA20	0.9067
Daily SMA50	0.9063
Daily SMA100	0.9132
Daily SMA200	0.9072

Levels
Previous Daily High	0.9214
Previous Daily Low	0.9167
Previous Weekly High	0.9237
Previous Weekly Low	0.9142
Previous Monthly High	0.9165
Previous Monthly Low	0.893
Daily Fibonacci 38.2%	0.9196
Daily Fibonacci 61.8%	0.9185
Daily Pivot Point S1	0.9169
Daily Pivot Point S2	0.9144
Daily Pivot Point S3	0.9122
Daily Pivot Point R1	0.9217
Daily Pivot Point R2	0.9239
Daily Pivot Point R3	0.9264

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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