USD/CHF jumps to 0.8900 neighborhood amid broad-based USD strength


  • USD/CHF regained positive traction on Wednesday amid a strong pickup in the USD demand.
  • Weaker risk sentiment might underpin the safe-haven CHF and cap the upside for the major.
  • Investors now eye US Durable Goods Orders for some impetus ahead of the FOMC decision.

The intraday USD buying picked up pace during the early European session and pushed the USD/CHF pair to fresh daily tops, closer to the 0.8900 mark in the last hour.

Following the previous day's rejection slide from the mentioned handle, the pair managed to regain positive traction on Wednesday and was supported by resurgent US dollar demand. Investors turned cautious amid doubts about the size and timing of a new US fiscal stimulus package, which, in turn, provided a modest lift to the greenback.

The USD uptick could further be attributed to some repositioning trade ahead of the latest FOMC monetary policy decision, due later this Wednesday. That said, the prevalent cautious mood around the equity markets could extend some support to the safe-haven Swiss franc and keep a lid on any meaningful upside for the USD/CHF pair.

Fading hopes for rapid approval of the long-awaited US economic stimulus plan comes amid growing market worries about the potential economic fallout from the continuous surge in coronavirus cases. This, along with escalating US-China tensions in the South China Sea, further weighed on investors' sentiment and dampened the market mood.

Even from a technical perspective, the USD/CHF pair has been struggling to find acceptance or capitalize on its move beyond the 0.8900 round-figure mark. This warrants some caution for bullish traders and makes it prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move.

Heading into the key event risk, the release of the US Durable Goods Orders data might influence the USD price dynamics and provide some impetus. Apart from this, the broader market risk sentiment and developments surrounding the coronavirus saga might further assist traders to grab some short-term opportunities.

Technical levels to watch

USD/CHF

Overview
Today last price 0.888
Today Daily Change 0.0018
Today Daily Change % 0.20
Today daily open 0.8862
 
Trends
Daily SMA20 0.8859
Daily SMA50 0.8914
Daily SMA100 0.9025
Daily SMA200 0.9221
 
Levels
Previous Daily High 0.8896
Previous Daily Low 0.8862
Previous Weekly High 0.8926
Previous Weekly Low 0.8838
Previous Monthly High 0.9093
Previous Monthly Low 0.8794
Daily Fibonacci 38.2% 0.8875
Daily Fibonacci 61.8% 0.8883
Daily Pivot Point S1 0.8851
Daily Pivot Point S2 0.884
Daily Pivot Point S3 0.8817
Daily Pivot Point R1 0.8885
Daily Pivot Point R2 0.8907
Daily Pivot Point R3 0.8919

 

 

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