USD/CHF rebounds from three-week low near 0.9050 on US Dollar recovery

USD/CHF rebounds from the three-week low as the US Dollar attempts to snap the losing streak.
Swiss Franc receives buying support due to its safe-haven status amid the Middle-East conflict.
The probability of policy rate hikes fades due to the dovish remarks made by Fed officials.

Akhtar Faruqui FXStreet

USD/CHF extends its losing streak for the fifth successive day, trading lower around 0.9070 during the Asian session on Tuesday. However, the pair rebounds from the three-week low as the US Dollar (USD) attempts to halt the losing streak.

Moreover, the USD/CHF pair is facing downward pressure due to the Palestine-Israel military conflict as the Swiss Franc (CHF) receives buying support due to its safe-haven status.

Early on Saturday, Hamas initiated an assault on Israel using land, air, and sea forces. In retaliation, the Israeli army has commenced a forceful response in Gaza, marking the region's most intense military conflict to date.

The US Dollar Index (DXY) trades higher around 106.17 at the time of writing. However, the US Dollar (USD) didn’t appreciate the robust US Nonfarm Payrolls data released on Friday.

Additionally, the Greenback’s depreciation can be attributed to a decline in US Treasury yields on Monday, with the 10-year US Treasury bond yield standing at 4.66% as of the current press time.

Moreover, the remarks made by Federal Reserve (Fed) officials overnight prompted investors to downplay the probability of additional rate hikes, resulting in a further drop in US bond yields. Consequently, this development is perceived as eroding the strength of the Greenback.

Dallas Fed president Lori Logan suggested that there might be less necessity to raise the Fed funds rate, and Fed Vice Chair Philip Jefferson acknowledged the importance of the central bank proceeding cautiously with any additional increases in the policy rate.

The impending release of the FOMC meeting minutes on Wednesday is anticipated to influence expectations regarding the Federal Reserve's next policy move, potentially impacting demand for the Greenback.

In the absence of any major data in the Swiss calendar this week, the US Core Producer Price Index (PPI) on Wednesday will be eyed, followed by the Consumer Price Index (CPI) on Thursday, as these events play a crucial role in evaluating inflationary trends and economic conditions in the United States.

USD/CHF: additional levels to watch

Overview
Today last price	0.9069
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	0.9066

Trends
Daily SMA20	0.9074
Daily SMA50	0.8916
Daily SMA100	0.8907
Daily SMA200	0.9027

Levels
Previous Daily High	0.9124
Previous Daily Low	0.905
Previous Weekly High	0.9244
Previous Weekly Low	0.9073
Previous Monthly High	0.9225
Previous Monthly Low	0.8795
Daily Fibonacci 38.2%	0.9078
Daily Fibonacci 61.8%	0.9095
Daily Pivot Point S1	0.9036
Daily Pivot Point S2	0.9006
Daily Pivot Point S3	0.8962
Daily Pivot Point R1	0.911
Daily Pivot Point R2	0.9154
Daily Pivot Point R3	0.9184

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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