USD/CHF consolidates near two-month tops, bulls await a move beyond 0.9200


  • USD/CHF edged higher for the third consecutive session on the last day of the week.
  • The Fed’s hawkish twist continued underpinning the USD and remained supportive.
  • Sliding US bond yields held the USD bulls on the defensive amid a softer risk tone.

The USD/CHF pair held steady near two-month tops through the first half of the European session, with bulls now awaiting a sustained move beyond the 0.9200 mark.

The pair edged higher for the third consecutive session on Friday and seems all set to build on this week's strong positive momentum, triggered by the Fed's sudden hawkish turn. It is worth recalling that the Fed stunned investors on Wednesday and brought forward its projections for the first post-pandemic interest rate hikes.

The so-called dot plot pointed to two rate hikes by the end of 2023 as against March's projection for no increase until 2024. This, in turn, continued acting as a tailwind for the US dollar and provided a modest lift to the USD/CHF pair. That said, sliding US Treasury bond yields held the USD bulls from placing fresh bets and capped gains.

On the other hand, the prevalent cautious mood around the equity markets extended some support to the safe-haven Swiss franc. This, along with slightly overbought conditions on short-term charts, might keep a lid on any meaningful upside for the USD/CHF pair. This, in turn, warrants some consolidation before the next leg up.

There isn't any major market-moving economic data due for release from the US. Hence, the US bond yields might play a key role in influencing the USD and provide some impetus to the USD/CHF pair. Traders might further take cues from the broader market risk sentiment to grab some short-term opportunities on the last day of the week.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9186
Today Daily Change 0.0009
Today Daily Change % 0.10
Today daily open 0.9177
 
Trends
Daily SMA20 0.8994
Daily SMA50 0.9066
Daily SMA100 0.9117
Daily SMA200 0.9069
 
Levels
Previous Daily High 0.9188
Previous Daily Low 0.9076
Previous Weekly High 0.901
Previous Weekly Low 0.8926
Previous Monthly High 0.9165
Previous Monthly Low 0.893
Daily Fibonacci 38.2% 0.9145
Daily Fibonacci 61.8% 0.9119
Daily Pivot Point S1 0.9106
Daily Pivot Point S2 0.9035
Daily Pivot Point S3 0.8993
Daily Pivot Point R1 0.9218
Daily Pivot Point R2 0.9259
Daily Pivot Point R3 0.933

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD approaches 1.1900 on broad dollar’s weakness

The greenback fell further in the Fed’s aftermath and after the US Q2 GDP missed expectations. Stocks lost momentum but remained in the green.

EUR/USD News

GBP/USD soars above 1.3950 on Fed dovishness, Brexit optimism

GBP/USD is trading above 1.40, extending its gains after the Fed seemed reluctant to taper bond buys. The EU's suspension of legal action over the NI protocol supports sterling. UK scraps quarantine rules for fully vaccinated EU, US travelers.

GBP/USD News

XAU/USD eyes $1,845 as bulls reclaim 200-day SMA

Gold is up more than 1% on Thursday. The next target on the upside is located at $1,845. USD continues to have a hard time finding demand following disappointing data releases.

Gold News

Cardano price fails to secure momentum, as 2018 high haunts ADA

Cardano price was firmly rejected at the 2018 high on July 26, emphasizing the importance of the level in securing a renewed and sustainable rally to the all-time high. 

Read more

US Second Quarter GDP and Inflation: Economics and politics

The US economy pulled up short of expectations in the second quarter, expanding at a 6.5% annualized rate despite government largesse of $1.9 trillion that began in March. Economists had predicted a 8.5% growth rate. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures