USD/CHF clings to modest intraday gains, remains below 0.9200 ahead of US GDP

USD/CHF gains some positive traction on Thursday amid a modest pickup in the USD demand.
Rebounding US bond yields underpins the buck amid some repositioning ahead of the US data.
Bets for smaller rate hikes by the Fed keep a lid on the USD and act as a headwind for the pair.

Haresh Menghani FXStreet

The USD/CHF pair attracts some buying in the vicinity of the weekly low, around the 0.9160 region on Thursday and recovers a part of the previous day's modest losses. The pair sticks to its modest gains heading into the North American session and is currently placed just below the 0.9200 mark.

In the meantime, an intraday pickup in the US Treasury bond yields assists the US Dollar to recover a bit from an eight-month low, which, in turn, lends some support to the USD/CHF pair. The USD uptick could further be attributed to some repositioning trade ahead of important US macro releases - the Preliminary (first estimate) fourth-quarter GDP print, Durable Goods Orders and New Home Sales data.

That said, rising bets for a smaller 25 bps interest rate hike by the Federal Reserve in February keep a lid on any meaningful upside for the US bond yields. This might hold back the USD bulls from placing aggressive bets. Furthermore, concerns about a deeper global economic downturn underpin the Swiss Franc's (CHF) relative safe-haven status and also contribute to capping gains for the USD/CHF pair.

Nevertheless, spot prices remain well within the striking distance of the lowest level since November 2021 touched last week. Moreover, the lack of any buying interest suggests that the near-term bearish trend witnessed since early November 2022 might still be far from being over. This makes it prudent to wait for strong follow-through buying before confirming that the USD/CHF pair has formed a bottom.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9186
Today Daily Change	0.0005
Today Daily Change %	0.05
Today daily open	0.9181

Trends
Daily SMA20	0.9248
Daily SMA50	0.9331
Daily SMA100	0.9578
Daily SMA200	0.9635

Levels
Previous Daily High	0.9245
Previous Daily Low	0.9172
Previous Weekly High	0.9288
Previous Weekly Low	0.9085
Previous Monthly High	0.9471
Previous Monthly Low	0.9201
Daily Fibonacci 38.2%	0.92
Daily Fibonacci 61.8%	0.9217
Daily Pivot Point S1	0.9154
Daily Pivot Point S2	0.9126
Daily Pivot Point S3	0.908
Daily Pivot Point R1	0.9226
Daily Pivot Point R2	0.9272
Daily Pivot Point R3	0.93

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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