USD/CHF looks to close modestly higher above 0.9700


  • USD/CHF stages a 50-pip recovery during American session.
  • USD gathers strength after Fed's Powell dismisses negative rates.
  • US Dollar Index steadies above 100 following Tuesday's drop.

The selling pressure surrounding the greenback during the first half of the day dragged the USD/CHF pair to a daily low of 0.9665. Nevertheless, FOMC Chairman Powell's comments on the monetary policy outlook triggered a fresh USD-buying wave and helped the pair recovery its losses. As of writing, the pair was up 0.27% on the day at 0.9720.

DXY gains traction during American session

While delivering his remarks on the current state of the US economy, Powell acknowledged that additional policy measures may be needed to avoid lasting damage to the economy. However, the chairman noted that the Fed intends to continue to use the tools that it has already tried and made it clear that they were not looking at negative rates.

The US Dollar Index (DXY), which fell to a daily low of 99.58 during the European session, made a sharp U-turn and now looks to close the day above 100.

Meanwhile, the market sentiment turned sour on Powell's commentary and allowed the CHF to limit its losses against its rivals. Reflecting the risk-off environment, Wall Street's main indexes are losing between 1.5% and 2.3%.

On Thursday, the Producer Price Index data from Switzerland will be released at 0630 GMT. Later in the day, the US economic docket will feature the weekly Initial Jobless Claims data as well as the Import Price Index and the Export Price Index. 

Technical levels to watch for

USD/CHF

Overview
Today last price 0.972
Today Daily Change 0.0026
Today Daily Change % 0.27
Today daily open 0.9694
 
Trends
Daily SMA20 0.9705
Daily SMA50 0.9655
Daily SMA100 0.9689
Daily SMA200 0.9787
 
Levels
Previous Daily High 0.975
Previous Daily Low 0.9665
Previous Weekly High 0.9784
Previous Weekly Low 0.9609
Previous Monthly High 0.9803
Previous Monthly Low 0.9595
Daily Fibonacci 38.2% 0.9698
Daily Fibonacci 61.8% 0.9718
Daily Pivot Point S1 0.9656
Daily Pivot Point S2 0.9618
Daily Pivot Point S3 0.9572
Daily Pivot Point R1 0.9741
Daily Pivot Point R2 0.9788
Daily Pivot Point R3 0.9826

 

 

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