USD/CHF holds steady near 0.9600 mark, bulls seemed reluctant amid modest USD weakness

USD/CHF reversed an intraday buying on Monday and climbed back above the 0.9600 mark.
A positive risk tone undermined the safe-haven CHF and extended some support to the pair.
Modest USD weakness failed to impress bullish traders and kept a lid on any further upside.

Haresh Menghani FXStreet

The USD/CHF pair attracted some dip-buying near the 0.9560 region on Monday and refreshed the daily high during the mid-European session, albeit lacked any follow-through strength. The pair was last seen hovering around the 0.9600 mark, well below a one-week high touched on Friday.

Signs of stability in the financial markets undermined demand for safe-haven assets, including the Swiss franc, which turned out to be a key factor that extended some support to the USD/CHF pair. That said, the emergence of some selling around the US dollar failed to impress bullish traders or provide any meaningful impetus to the major.

Investors remain concerned that rapidly rising interest rates and tightening financial conditions would pose challenges to global economic growth. Adding to this, the ongoing Russia-Ukrain war and the latest COVID-19 outbreak in China have been fueling worries about a possible economic recession, which dragged the US bond yields to a multi-week low.

On the other hand, the CHF continued drawing support from the Swiss National Bank's shocker on June 16, when it unexpectedly raised interest rates by 50 bps to curb soaring inflation. This warrants caution before positioning for any meaningful upside for the USD/CHF pair amid relatively lighter trading volumes on the back of a holiday in the US.

Investors also seemed reluctant and might prefer to wait for a fresh catalyst from this week's release of the FOMC monetary policy meeting minutes on Wednesday. Apart from this, the closely-watched US monthly jobs report (NFP) on Friday will influence the USD price dynamics and help determine the near-term trajectory for the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9607
Today Daily Change	0.0011
Today Daily Change %	0.11
Today daily open	0.9596

Trends
Daily SMA20	0.9709
Daily SMA50	0.9736
Daily SMA100	0.9522
Daily SMA200	0.937

Levels
Previous Daily High	0.9642
Previous Daily Low	0.9543
Previous Weekly High	0.9642
Previous Weekly Low	0.9495
Previous Monthly High	1.005
Previous Monthly Low	0.9495
Daily Fibonacci 38.2%	0.9604
Daily Fibonacci 61.8%	0.9581
Daily Pivot Point S1	0.9546
Daily Pivot Point S2	0.9495
Daily Pivot Point S3	0.9447
Daily Pivot Point R1	0.9644
Daily Pivot Point R2	0.9692
Daily Pivot Point R3	0.9743

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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