• USD/CHF turned lower for the second successive day and was pressured by a combination of factors.
  • A softer risk tone benefitted the safe-haven CHF and exerted pressure amid subdued USD demand.
  • The downside seems cushioned ahead of the US economic releases and the FOMC meeting minutes.

The USD/CHF pair remained on the defensive through the early European session and was last seen hovering near the daily low, around mid-0.9100s.

A combination of factors failed to assist the USD/CHF pair to capitalize on the overnight late bounce, instead attracting fresh sellers near the 200-day SMA, around the 0.9165-70 region on Wednesday. An extended selloff in the US money markets led to a corrective pullback in the US tech stocks on Tuesday. The spillover effect was evident from a generally weaker trading sentiment around the equity markets, which, in turn, benefitted the safe-haven Swiss franc.

Retreating US Treasury bond yields reinforced the flight to safety, which undermined the US dollar and exerted some pressure on the USD/CHF pair for the second successive day. That said, expectations for a faster policy tightening by the Fed should act as a tailwind for the greenback. In fact, the money markets have been pricing in the possibility for an eventual lift-off by May and two more interest rate hikes by the end of 2022.

The market focus will remain glued to Wednesday's release of the FOMC meeting minutes, due later during the US session, for clues as to the pace of policy change. In the meantime, traders might take cues from the US macro data – the ADP report on private-sector employment, Building Permits and the final Services PMI. Apart from this, the US bond yields might influence the USD price dynamics, which along with the broader market risk sentiment should provide some impetus to the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9147
Today Daily Change -0.0015
Today Daily Change % -0.16
Today daily open 0.9162
 
Trends
Daily SMA20 0.9196
Daily SMA50 0.9206
Daily SMA100 0.9213
Daily SMA200 0.9172
 
Levels
Previous Daily High 0.9197
Previous Daily Low 0.9137
Previous Weekly High 0.9202
Previous Weekly Low 0.9102
Previous Monthly High 0.9295
Previous Monthly Low 0.9102
Daily Fibonacci 38.2% 0.916
Daily Fibonacci 61.8% 0.9174
Daily Pivot Point S1 0.9134
Daily Pivot Point S2 0.9105
Daily Pivot Point S3 0.9074
Daily Pivot Point R1 0.9194
Daily Pivot Point R2 0.9225
Daily Pivot Point R3 0.9254

 

 

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