USD/CHF pares early losses to sub-0.9400 levels, lacks follow-through

USD/CHF came under some fresh selling on Monday after the Fed’s emergency rate cut decision.
The prevailing risk-off environment provided a goodish lift to the Swiss franc’s safe-haven status.
Tumbling US bond yields undermined the USD demand and added to the pair’s intraday selling bias.

Haresh Menghani FXStreet

The USD/CHF pair maintained its offered tone through the early North-American session, albeit has managed to recover around 50 pips from an early dip to sub-0.9400 levels.

The pair failed to capitalize on last week's goodish recovery move from multi-year lows and met with some fresh supply on the first day of a new trading week in reaction to the Fed's emergency decision to slash interest rates to zero.

The US central bank also pledged to restart buying a total of $700 billion in US Treasuries/mortgage-backed securities, which triggered a fresh leg of a steep decline in the US Treasury bond yields and weighed heavily on the US dollar.

Meanwhile, the global equity markets extended their recent freefall amid mounting fears over the economic impact from the coronavirus pandemic. The already weaker sentiment deteriorated further in the wake of awful Chinese macro data.

This eventually provided a strong boost to perceived safe-haven currencies – including the Swiss franc – and further contributed to the pair's intraday pullback, though bulls showed some resilience below the 0.9400 round-figure mark.

The pair now seems to have stabilized near the 0.9440-50 region as investors await fresh developments surrounding the coronavirus saga before positioning for the pair's next leg of a directional move amid absent relevant market moving economic releases.

Technical levels to watch

USD/CHF

Overview
Today last price	0.944
Today Daily Change	-0.0073
Today Daily Change %	-0.77
Today daily open	0.9513

Trends
Daily SMA20	0.9616
Daily SMA50	0.9675
Daily SMA100	0.9771
Daily SMA200	0.9823

Levels
Previous Daily High	1.189
Previous Daily Low	0.9226
Previous Weekly High	1.189
Previous Weekly Low	0.9183
Previous Monthly High	0.9851
Previous Monthly Low	0.9609
Daily Fibonacci 38.2%	1.0872
Daily Fibonacci 61.8%	1.0244
Daily Pivot Point S1	0.8529
Daily Pivot Point S2	0.7545
Daily Pivot Point S3	0.5864
Daily Pivot Point R1	1.1194
Daily Pivot Point R2	1.2874
Daily Pivot Point R3	1.3858

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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