USD/CHF: Dollar bulls take profits after erasing most of the week’s gains

USD/CHF loses most of its weekly gains in the last 24 hours.
The 100-period SMA on the 4-hour chart is providing support.

FXStreet Team FXStreet

The USD/CHF is currently trading down 0.7% at about 0.9360 since it retraced sharply lower from yesterday’s highs seen at 0.9492 losing 140 pips in the last 24 hours.

The Swissy has gained more than 160 pips over the course of the week from 0.9327 to 0.9490. The drive behind the move up being the Fed chairman Powell’s testifying in front of the Congress. In the first part of the hearing Powell’s comment where very optimistic about the economy and wage growth and saw no hindrance for rate hikes.

In the second part of the hearing on Thursday he was more cautious with his wording, saying: “we don’t see any strong evidence yet of a decisive move up in wages”. He also went further by saying that he did not see a tightening in labor market causing wages to hit “a point of acceleration”. He also commented on the recent move made by Trump on tariffs saying: “…the tariff’s approach is not the best approach, the best approach is to deal directly with the people who are directly affected…”.

Technically the USD/CHF is consolidating at the 0.9360 level sitting at the 100-period simple moving average on the 4-hour chart and less than 20 pips away from the 50% Fibonacci retracement from the February 16 to March 1 move up. A break below this level can lead to the 61.8% Fibonacci retracement at 0.9300. Further down 0.92540 should provide some support as it is the 78.6% Fibonacci retracement from the February 16 to March 1 move up. To the upside 0.9420 with the 23.6% Fibonacci retracement level along with the 200-simple moving average nearby should provide resistance. The next key resistance being the high made of Thursday at 0.9492.

USD/CHF 4hour chart

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.