USD/CHF refreshes session lows, around 0.9670 amid notable USD supply


  • USD/CHF failed to capitalize on its early uptick amid a broad-based USD weakness.
  • The USD bulls failed to gain any respite from Thursday’s mixed US macro releases.
  • Worsening US-China relations benefitted the safe-haven CHF and weighed further.
  • The upbeat mood in the equity markets helped limit deeper losses, at least for now.

The USD/CHF pair retreated around 40 pips from the mid-European session swing high and refreshed daily lows, around the 0.9680 region in the last hour.

The pair failed to capitalize on its attempted intraday positive move, instead met with some fresh supply near the 0.9720 region amid some renewed US dollar selling bias. The already weaker sentiment surrounding the greenback deteriorated further after the first revision of the US GDP came in to show a contraction of 5.0% in the January-March period as compared to 4.8% estimated previously.

The dismal GDP print was accompanied by slightly higher-than-expected Initial Weekly jobless claims, which showed over 2.1 million Americans filed for unemployment-related benefits during the week ending May 23rd. Separately, Durable Goods Orders slumped by 17.2% MoM in April. The reading was better than consensus estimates, albeit did little impress bulls or provide any immediate respite to the USD.

Apart from a broad-based USD weakness, concerns about a further escalation in diplomatic tensions between the United States and China further benefitted the Swiss franc's perceived safe-haven status. However, the upbeat market mood around the equity markets, supported by the optimism over a potential COVID-19 vaccine and hopes of a global economic recovery, might help limit deeper losses for the pair.

Looking at the broader picture, the USD/CHF pair has been oscillating well within a broader trading range since the beginning of May. This makes it prudent to wait for a sustained breakthrough in either direction before traders start positioning for the pair's near-term trajectory.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9677
Today Daily Change -0.0005
Today Daily Change % -0.05
Today daily open 0.9682
 
Trends
Daily SMA20 0.9699
Daily SMA50 0.9705
Daily SMA100 0.9686
Daily SMA200 0.9784
 
Levels
Previous Daily High 0.9728
Previous Daily Low 0.9652
Previous Weekly High 0.9761
Previous Weekly Low 0.9638
Previous Monthly High 0.9803
Previous Monthly Low 0.9595
Daily Fibonacci 38.2% 0.9699
Daily Fibonacci 61.8% 0.9681
Daily Pivot Point S1 0.9646
Daily Pivot Point S2 0.9611
Daily Pivot Point S3 0.957
Daily Pivot Point R1 0.9723
Daily Pivot Point R2 0.9764
Daily Pivot Point R3 0.9799

 

 

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