USD/CHF recovers further from two-week low, climbs to 0.9265-70 area

  • USD/CHF gained strong positive traction and recovered a part of Friday’s slump to a two-week low.
  • The risk-on flow undermined the safe-haven CHF and extended support amid renewed USD strength.
  • Expectations for a shift in the Fed’s policy outlook might cap gains for the greenback and the major.

The USD/CHF pair maintained its bid tone through the early European session and climbed to a fresh daily top, around the 0.9270 region in the last hour.

A combination of factors assisted the USD/CHF pair to attract some buying on the first day of a new week and recover a part of Friday's slump to a two-week low, around the 0.9215 region. The global risk sentiment stabilized a bit as investors preferred to wait and see if the new Omicron coronavirus variant would eventually derail the economic recovery. This was evident from a goodish bounce in the equity markets, which undermined the safe-haven Swiss franc and acted as a tailwind for the USD/CHF pair.

Meanwhile, the risk-on flow was reinforced by a strong pickup in the US Treasury bond yields. This helped revive the US dollar demand and further contributed to the USD/CHF pair's move up. That said, the repricing of the likely timing of the Fed's interest rate hike move might hold back the USD bulls from placing aggressive bets and cap any meaningful upside for the major. The detection of a new vaccine-resistant coronavirus variant might have forced investors to reassess the Fed's (hawkish) policy outlook.

Hence, it will be prudent to wait for a strong follow-through buying before confirming that the corrective pullback has run its course and positioning for any further intraday appreciating move. Nevertheless, the USD/CHF pair, so far, has shown some resilience below the 50-day SMA, which should now act as a key pivotal point for short-term traders. Market participants now look forward to the US economic docket, featuring the only release of Pending Home Sales data later during the early North American session.

This, along with the US bond yields, might influence the USD price dynamics and provide some impetus to the USD/CHF pair. The key focus, however, will remain on developments surrounding the coronavirus saga, which will play a key role in driving the broader market risk sentiment and demand for the safe-haven CHF. The combination of factors could, in turn, produce some trading opportunities around the major.

Technical levels to watch


Today last price 0.9268
Today Daily Change 0.0038
Today Daily Change % 0.41
Today daily open 0.923
Daily SMA20 0.9222
Daily SMA50 0.9235
Daily SMA100 0.9199
Daily SMA200 0.9178
Previous Daily High 0.9362
Previous Daily Low 0.9218
Previous Weekly High 0.9374
Previous Weekly Low 0.9218
Previous Monthly High 0.9338
Previous Monthly Low 0.9106
Daily Fibonacci 38.2% 0.9273
Daily Fibonacci 61.8% 0.9307
Daily Pivot Point S1 0.9178
Daily Pivot Point S2 0.9125
Daily Pivot Point S3 0.9033
Daily Pivot Point R1 0.9322
Daily Pivot Point R2 0.9414
Daily Pivot Point R3 0.9466



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1450 despite disappointing US data

EUR/USD is having a difficult time gathering bullish momentum in the early American session and trades in the negative territory below 1.1450. The US Census Bureau reported on Friday that Retail Sales in December fell by 1.9%, missing the market expectation of a no-change by a wide margin.


GBP/USD drops below 1.3700 as dollar gains traction

GBP/USD stays under modest bearish pressure in the American session and trades below 1.3700. The US Dollar Index is clinging to modest daily recovery gains near 95.00 despite weaker-than-forecast macroeconomic data releases from the US.


Gold fluctuates in daily range above $1,820 after US data

Gold declined to $1,820 during the European trading hours but managed to edge higher toward $1,830 in the early American. The benchmark 10-year US Treasury bond yield retreated from 1.75% after the dismal US data, allowing XAU/USD to gain traction.

Gold News

Dogecoin price on track to hit new highs, rallying 16% with Tesla payments going live

Tesla announced that it accepts Dogecoin and cannot receive or detect any other cryptocurrency. Analysts have predicted an explosive rally in Dogecoin price, continuing the uptrend. 

Read more

Why did TSLA stock fall 7% on Thursday?

Tesla stock dumps on Thursday as tech takes a bath. TSLA shares fell nearly 7% to close at $1,031.56. Tesla support at the short-term pivot remains at $980.

Read more