USD/CHF remains on the defensive below 0.9700 handle

USD/CHF comes under some renewed selling pressure on Monday.
Heightened geopolitical tensions benefitted CHF’s safe-haven status.
Some renewed USD selling bias further collaborated to the downfall.

Haresh Menghani FXStreet

The USD/CHF pair remained under some selling pressure through the mid-European session on Monday and refreshed daily lows, below the 0.9700 handle in the last hour.

A combination of negative forces failed to assist the pair to capitalize on its attempted intraday recovery move, rather prompted some fresh selling at higher levels. The pair snapped two consecutive days of winning streak and for now, seems to have stalled its recent bounce from over 15-month lows.

USD/CHF weighed down by a combination of factors

The prevalent risk-off mood – amid growing market concerns over a major conflict in the Middle East – continued benefitting the Swiss Franc's perceived safe-haven status. This coupled with some renewed US dollar selling bias further collaborated to the pair's intraday slide of around 30-35 pips.

Fears over the fallout from the US killing of Qassem Soleimani, a leading Iranian military commander, intensified on Monday after Iran said it would no longer abide by the 2015 nuclear deal. This comes on the back of the US President Donald Trump's warning of major retaliation if Iran hits back.

The downside, however, remained cushioned, at least for the time being, as investors refrained from placing fresh bets amid absent relevant market-moving economic releases from the US. Hence, it will be prudent to wait for some follow-through selling before positioning for any further depreciating move.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9696
Today Daily Change	-0.0026
Today Daily Change %	-0.27
Today daily open	0.9722

Trends
Daily SMA20	0.9787
Daily SMA50	0.9868
Daily SMA100	0.9884
Daily SMA200	0.9924

Levels
Previous Daily High	0.9744
Previous Daily Low	0.9688
Previous Weekly High	0.9757
Previous Weekly Low	0.9646
Previous Monthly High	1.0009
Previous Monthly Low	0.9646
Daily Fibonacci 38.2%	0.9723
Daily Fibonacci 61.8%	0.9709
Daily Pivot Point S1	0.9692
Daily Pivot Point S2	0.9662
Daily Pivot Point S3	0.9636
Daily Pivot Point R1	0.9748
Daily Pivot Point R2	0.9774
Daily Pivot Point R3	0.9804

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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