USD/CHF Price Analysis: Climbs near 0.9800 on broad US dollar strength, risk aversion

The USD/CHF is upward biased, but the SNB stance change could cap USD/CHF rallies toward the YTD high.
USD/CHF Price Analysis: Keeps bullish bias so any pullbacks are better opportunities for buyers to step in.

Christian Borjon Valencia FXStreet

The USD/CHF advances firmly on Monday amidst traders’ risk-off sentiment, which bolstered the greenback. However, last month’s Swiss National Bank (SNB) sudden shift towards a hawkish posture put a lid on the USD/CHF climb, retreating from daily highs around 0.9840.

The USD/CHF is trading around the 0.9790s region and remains positive in the day, up by 0.33% amidst a risk-aversion trading day.

USD/CHF daily chart

The USD/CHF is still in an uptrend, as depicted by the daily chart. However, some selling pressure emerged between the 0.9800-0.9900 range, dragging prices lower, below last Friday’s daily high at 0.9797. Oscillators remain in bullish territory, like the Relative Strength Index (RSI) at 60.67, with room to spare before reaching overbought conditions. Therefore, the USD/CHF path of least resistance will continue upwards.

That said, the USD/CHF first resistance will be 0.9800. A breach of the latter will send the major towards July 11 high at 0.9843, followed by May 23, 2020, daily high at 0.9901.

USD/CHF 1-hour chart

The USD/CHF shows an upward trajectory, aligned with the USD/CHF higher time-frame (HT), being the daily chart. Nevertheless, the rally stalled around the R2 daily pivot, and subsequent pullbacks should be bought, as the major would continue to the upside. USD/CHF traders should be aware that the Relative Strenght Index (RSI) in this time frame, as the pair rallies and retraces, the RSI has been seesawing within the 50-70 boundaries without reaching overbought conditions, meaning the uptrend is solid.

Hence, the USD/CHF first resistance would be the R1 pivot point at 0.9800. The break above would expose the R2 daily pivot at 0.9835, followed by the daily high around 0.9843.

USD/CHF Key Technical Levels

USD/CHF

Overview
Today last price	0.979
Today Daily Change	0.0022
Today Daily Change %	0.23
Today daily open	0.9768

Trends
Daily SMA20	0.9689
Daily SMA50	0.974
Daily SMA100	0.9546
Daily SMA200	0.938

Levels
Previous Daily High	0.9798
Previous Daily Low	0.9723
Previous Weekly High	0.9798
Previous Weekly Low	0.9562
Previous Monthly High	1.005
Previous Monthly Low	0.9495
Daily Fibonacci 38.2%	0.9769
Daily Fibonacci 61.8%	0.9752
Daily Pivot Point S1	0.9729
Daily Pivot Point S2	0.9689
Daily Pivot Point S3	0.9654
Daily Pivot Point R1	0.9803
Daily Pivot Point R2	0.9838
Daily Pivot Point R3	0.9878

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.