• USD/CHF stage modest recovery from a fresh monthly low touched earlier this Friday.
  • The risk-on impulse undermined the safe-haven CHF and acted as a tailwind to the pair.
  • Rebounding US bond yields helped revive the USD demand and remained supportive.
  • Recession fears held back bulls from placing aggressive bets and might cap the upside.

The USD/CHF pair traded with a mild positive bias through the early North American session and was last seen hovering near the daily peak, around the 0.9740-0.9745 region.

Having shown some resilience below the 0.9700 mark, the USD/CHF pair staged modest bounce from a fresh monthly low touched earlier this Friday amid the risk-on impulse. The market sentiment got a boost after the People’s Bank of China (PBOC) cut its five-year loan prime rate by 15 basis points to counter an economic slowdown. This was evident from the strong recovery in the equity markets, which undermined the safe-haven Swiss franc and acted as a tailwind for the major.

On the other hand, the US dollar drew some support from rebounding US Treasury bond yields and the prospects for a more aggressive policy tightening by the Fed. This was seen as another factor that contributed to the USD/CHF pair's intraday recovery of over 50 pips. That said, concerns about softening global economic growth kept a lid on the optimism and held back bulls from placing aggressive bets amid absent relevant market-moving economic release from the US.

The markets remain worried that a more aggressive move by major central banks to constrain inflation could pose challenges to global economic growth. Apart from this, the Russia-Ukraine war and extended COVID-19 lockdowns in China have been fueling recession fears. This might continue to drive some haven flows, making it prudent to wait for strong follow-through buying before confirming that the USD/CHF pair has formed a near-term bottom and positioning for any further gains.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9739
Today Daily Change 0.0008
Today Daily Change % 0.08
Today daily open 0.9731
 
Trends
Daily SMA20 0.9821
Daily SMA50 0.954
Daily SMA100 0.9375
Daily SMA200 0.9294
 
Levels
Previous Daily High 0.9897
Previous Daily Low 0.9697
Previous Weekly High 1.0049
Previous Weekly Low 0.9872
Previous Monthly High 0.9759
Previous Monthly Low 0.9221
Daily Fibonacci 38.2% 0.9773
Daily Fibonacci 61.8% 0.9821
Daily Pivot Point S1 0.9653
Daily Pivot Point S2 0.9575
Daily Pivot Point S3 0.9454
Daily Pivot Point R1 0.9853
Daily Pivot Point R2 0.9975
Daily Pivot Point R3 1.0053

 

 

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