- 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
|Today last price||0.9437|
|Today Daily Change||0.0015|
|Today Daily Change %||0.16|
|Today daily open||0.9422|
|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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