USD/CHF clings to recovery gains near session tops, around 0.9440 area


  • USD/CHF gained traction on Tuesday and built on the overnight bounce from four-week lows.
  • A modest pickup in the USD demand was seen as one of the key factors driving the pair higher.
  • Concerns about rising coronavirus cases dented the global risk sentiment and might cap gains.

The USD/CHF pair edged higher through the early European session and was last seen trading near the top end of its daily trading range, around the 0.9435-40 region.

The pair once again showed some resilience below the 0.9400 round-figure mark and staged a modest bounce from four-week lows on Monday. The uptick was sponsored by a pickup in the US dollar demand following the release of the US ISM Non-Manufacturing PMI for June. The data added to last week's stellar US monthly jobs report and indicated that the US economy might have already started to recover.

This coupled with a strong rally in the US equity markets undermined demand for the safe-haven Swiss franc and remained supportive of the overnight bounce. The momentum extended through the first half of the trading action on Tuesday, helping the USD/CHF pair to snap five consecutive days of the losing streak and seemed rather unaffected by a slight deterioration in the global risk sentiment amid concerns about the second wave of coronavirus infections.

Investors remain concerned that the ever-increasing number of new COVID-19 cases could trigger renewed lockdown measures and once again put brakes on the economic activity. This, in turn, is expected to delay economic recovery and keep a lid on any optimism. The market worries were evident from a fresh leg down in the equity markets, which warrants some caution for bullish traders.

There isn't any major market-moving economic data due for release on Tuesday. Hence, it will be prudent to wait for some strong follow-through buying before confirming that the USD/CHF pair might have bottomed out in the near-term and positioning for any further recovery move.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9437
Today Daily Change 0.0015
Today Daily Change % 0.16
Today daily open 0.9422
 
Trends
Daily SMA20 0.9479
Daily SMA50 0.9598
Daily SMA100 0.963
Daily SMA200 0.9732
 
Levels
Previous Daily High 0.9456
Previous Daily Low 0.9384
Previous Weekly High 0.9533
Previous Weekly Low 0.9427
Previous Monthly High 0.9651
Previous Monthly Low 0.9376
Daily Fibonacci 38.2% 0.9412
Daily Fibonacci 61.8% 0.9429
Daily Pivot Point S1 0.9385
Daily Pivot Point S2 0.9349
Daily Pivot Point S3 0.9313
Daily Pivot Point R1 0.9457
Daily Pivot Point R2 0.9493
Daily Pivot Point R3 0.9529

 

 

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