USD/CHF moves back closer to weekly tops, bulls await a move beyond 200-DMA

USD/CHF witnessed some good two-way price moves during the early North American session.
The Fed Governor Richard Clarida’s comments, risk-off mood exerted some downward pressure.
Surging US bond yields, stronger US CPI underpinned the USD and helped regain positive traction.

Haresh Menghani FXStreet

The USD/CHF pair dropped to fresh daily lows, around the 0.9025 level during the early North American session, albeit quickly recovered thereafter. The pair was last seen trading around 0.9060-65 region, up 0.30% for the day.

The headline CPI posted the largest rise since September 2008 and accelerated to 4.2% YoY in April. Apart from this, the core CPI also surpassed expectations and jumped 3.0% YoY. The data added to the market worries that the rapid rise in inflation may be something more than transitory and could push the Fed to tighten its policy earlier than expected.

The US dollar, however, struggled to capitalize on the post-CPI positive move, instead met with some fresh supply after the Fed Governor Richard Clarida reiterated that inflation above 2% is due to transitory factors. Apart from this, the prevalent risk-off mood underpinned the safe-haven Swiss franc and exerted some pressure on the USD/CHF pair.

That said, a sharp spike in the US Treasury bond yields acted as a tailwind for the USD and assisted the USD/CHF pair to turn positive for the third consecutive session. It will now be interesting to see if bulls are able to build on the momentum or struggle to push the pair further beyond the very important 200-day SMA barrier, around the 0.9080-85 region.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9066
Today Daily Change	0.0029
Today Daily Change %	0.32
Today daily open	0.9037

Trends
Daily SMA20	0.9127
Daily SMA50	0.9237
Daily SMA100	0.908
Daily SMA200	0.9083

Levels
Previous Daily High	0.904
Previous Daily Low	0.9002
Previous Weekly High	0.9165
Previous Weekly Low	0.9004
Previous Monthly High	0.9473
Previous Monthly Low	0.908
Daily Fibonacci 38.2%	0.9025
Daily Fibonacci 61.8%	0.9016
Daily Pivot Point S1	0.9013
Daily Pivot Point S2	0.8988
Daily Pivot Point S3	0.8975
Daily Pivot Point R1	0.9051
Daily Pivot Point R2	0.9064
Daily Pivot Point R3	0.9089

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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