USD/CHF Price Analysis: Sellers brace for sub-0.9500 area

USD/CHF struggles to defend the first daily gains in three.
Nearby support line challenges sellers ahead of directing them to 61.8% FE.
Convergence of 50-SMA, fortnight-old resistance line guards recovery moves.

Anil Panchal FXStreet

USD/CHF pares intraday losses around 0.9550 heading into Friday’s European session. In doing so, the Swiss franc (CHF) pair pokes a two-day-old support line by the press time.

That said, the MACD signals keep buyers hopeful but a convergence of the 50-SMA and a downward sloping resistance line from June 17, around 0.9590, restrict short-term advances of the pair.

Even if the quote rises past 0.9590, the 0.9600 threshold and the early June peak surrounding 0.9660 could test the USD/CHF bulls before giving them control. In that case, an area comprising levels marked during early May and mid-June, around 0.9725-30, will be crucial to watch.

On the contrary, a downside break of the immediate support line, close to 0.9550 at the latest, will renew the declines targeting the monthly low of 0.9495.

It’s worth noting, however, that the USD/CHF weakness past 0.9495 could aim for the 61.8% Fibonacci Expansion (FE) of June 17-30 moves, near 0.9470. Also increasing the strength of the 0.9470 support is the April 2021 high.

Overall, the USD/CHF prices are likely to decline further but the bears may have a tough time breaking the 0.9470 support.

USD/CHF: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.9557
Today Daily Change	0.0010
Today Daily Change %	0.10%
Today daily open	0.9547

Trends
Daily SMA20	0.9711
Daily SMA50	0.9736
Daily SMA100	0.9519
Daily SMA200	0.9368

Levels
Previous Daily High	0.9605
Previous Daily Low	0.953
Previous Weekly High	0.9713
Previous Weekly Low	0.9522
Previous Monthly High	1.005
Previous Monthly Low	0.9495
Daily Fibonacci 38.2%	0.9559
Daily Fibonacci 61.8%	0.9576
Daily Pivot Point S1	0.9516
Daily Pivot Point S2	0.9485
Daily Pivot Point S3	0.9441
Daily Pivot Point R1	0.9592
Daily Pivot Point R2	0.9636
Daily Pivot Point R3	0.9667

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD steadies above 0.7100 after RBA-speak

AUD/USD holds steady above 0.7100 in the Asian session on Tuesday, shrugging off hawkish comments from RBA Assistant Governor Sarah Hunter and Governor Michele Bullock. Meanwhile, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, weighing on the pair. The crucial Trump-Xi summit is later this week and remains in focus.

USD/JPY holds small gains near 157.50 as JPY intervention risks loom

USD/JPY posts modest gains while trading near 157.50 in the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. Meanwhile, the US Dollar retains a bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, providing tailwinds for the pair.

Gold benefits from falling US bond yields; remains below $4,400 amid bullish USD

Gold regains positive traction during the Asian session on Tuesday, though it lacks bullish conviction and remains below $4,400. Falling oil prices ease inflation fears, dragging US bond yields lower and supporting the non-yielding yellow metal. Meanwhile, the Fed's hawkish stance, along with escalating Middle East tensions, keeps the US Dollar near its highest level since late July and acts as a headwind for the bullion.

Ethereum rallies above $2,700 as investors shrug off bearish sentiment

Ethereum (ETH) climbed above $2,700 on Monday after investors defended the realized price level despite negative sentiment over the Clarity Act's failure and the Federal Reserve rate hike. After the Clarity Act failed to advance in the Senate, ETH dipped below $2,400 last week. But right below that price is the top altcoin's realized price, or average on-chain cost basis, at $2,310.

Iranian President will head to New York for UN meeting

President Masoud Pezeshkian will lead an Iranian delegation at the United Nations General Assembly in New York on Tuesday, amid renewed hopes for a diplomatic solution to the Middle East conflict, CNBC reported on Monday. A high-ranking Iranian delegation, including Foreign Minister Abbas Araghchi, will accompany President Pezeshkian.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.