USD/CHF staged modest recovery from a one-month low amid resurgent USD demand.

The risk-off mood underpinned the safe-haven CHF and kept a lid on any further gains.

Investors look forward to the FOMC meeting minutes for a fresh directional impetus.

The USD/CHF pair held on to its modest gains through the early North American session and was last seen trading just a few pips below the daily high, around the 0.9620-0.9625 region.

The US dollar made a solid comeback and snapped a two-day losing streak to a nearly one-month low, which, in turn, assisted the USD/CHF pair to attract some buying on Wednesday. Repositioning trade ahead of the FOMC minutes turned out to be a key factor that prompted short-covering around the USD, which seemed unaffected by softer-than-expected US Durable Goods Orders data.

That said, the prevalent risk-off environment extended some support to the safe-haven Swiss franc and kept a lid on any meaningful upside for the USD/CHF pair. Investors remain worried that a more aggressive move by major central banks to constrain inflation, the Russia-Ukraine war and the latest COVID-19 outbreak in China would pose challenges to the global economy.

The worsening global economic outlook continued weighing on investors' sentiment, which was evident from a generally weaker tone around the equity markets. The anti-risk flow was reinforced by declining US Treasury bond yields. This might further hold back the USD bulls from placing aggressive bets and cap gains for the USD/CHF pair ahead of the key event risk.

Given that a 50 bps Fed rate hike move is fully priced in, market participants will look for clues about the possibility of a jumbo 75 bps rate hike in June. This will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus to the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9624
Today Daily Change 0.0019
Today Daily Change % 0.20
Today daily open 0.9605
 
Trends
Daily SMA20 0.9832
Daily SMA50 0.9557
Daily SMA100 0.9391
Daily SMA200 0.9302
 
Levels
Previous Daily High 0.967
Previous Daily Low 0.9574
Previous Weekly High 1.0064
Previous Weekly Low 0.9694
Previous Monthly High 0.9759
Previous Monthly Low 0.9221
Daily Fibonacci 38.2% 0.9611
Daily Fibonacci 61.8% 0.9633
Daily Pivot Point S1 0.9562
Daily Pivot Point S2 0.952
Daily Pivot Point S3 0.9466
Daily Pivot Point R1 0.9658
Daily Pivot Point R2 0.9712
Daily Pivot Point R3 0.9754

 

 

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