USD/CHF clings to small daily gains around 0.9400

USD/CHF is moving sideways in a tight range on Monday.
US Dollar Index struggles to build on last week's gains.
Investors stay focused on US stocks, T-bond yields.

Eren Sengezer FXStreet

The USD/CHF pair touched its highest level since mid-July at 0.9419 on Friday and gained nearly 100 pips on a weekly basis. Amid a lack of significant fundamental drivers at the start of the week, the pair is trading in a very tight range around 0.9400.

DXY holds below 93.00 on Monday

The broad-based USD strength fueled USD/CHF's climb last week. The US Dollar Index (DXY), which tracks the greenback's performance against a basket of six major currencies, advanced to a fresh multi-month high of 92.91 on Friday but seems to have gone into a consolidation phase on Monday. Currently, the index is virtually unchanged on the day at 92.77.

The 1.5% decline witnessed in the benchmark 10-year US Treasury bond yield seems to be making it difficult for the DXY to preserve its bullish momentum. However, the US stock index futures trade in the negative territory and helping the USD stay resilient against its rivals.

Following the closing bell on Friday, Archegos Capital Management, a US-based large hedge fund, announced that it defaulted on margin calls and triggered a selloff in financial stocks, including Nomura and Credit Suisse. Currently, the S&P 500 Futures are losing 0.42% on the day and a sharp decline in Wall Street's main indexes in the second half of the day could provide a boost to the USD.

Technical levels to watch for

USD/CHF

Overview
Today last price	0.9398
Today Daily Change	0.0008
Today Daily Change %	0.09
Today daily open	0.939

Trends
Daily SMA20	0.928
Daily SMA50	0.908
Daily SMA100	0.9016
Daily SMA200	0.9107

Levels
Previous Daily High	0.9418
Previous Daily Low	0.9383
Previous Weekly High	0.9418
Previous Weekly Low	0.9223
Previous Monthly High	0.9102
Previous Monthly Low	0.8871
Daily Fibonacci 38.2%	0.9396
Daily Fibonacci 61.8%	0.9405
Daily Pivot Point S1	0.9376
Daily Pivot Point S2	0.9362
Daily Pivot Point S3	0.9341
Daily Pivot Point R1	0.9411
Daily Pivot Point R2	0.9432
Daily Pivot Point R3	0.9446

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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