USD/CHF remains on the defensive with upside attempts capped below 0.8760

Guillermo Alcala FXStreet

The Dollar maintains its bearish bias with recovery attempts capped below 0.8760.
Speculatioon of Fed rate cuts in March are weighing on the US Dollar.
Weaker-than-expected Swiss CPI likely to weigh on the CHF.

The US Dollar’s mild recovery attempt seen early on Monday has found support right below the 0.8760 resistance area, which leaves the pair treading water near four-month lows.

The pair regained some ground during the Asian trading session. The market has assumed that the end of Fed’s tightening cycle, yet caution is prevailing as a string of key US employment figures will determine the chances that the bank starts cutting rates in early 2024.

Hopes of Fed cuts in March are weighing on the USD

On Friday, Fed Chair Powell's cautious tone regarding further tightening and a weaker-than-expected US ISM manufacturing PMI strengthened the idea that the effect of high rates is starting to affect the overall economy. This boosted hopes of rate cuts in March, and sent the US Dollar lower across the board.

In Switzerland, November’s CPI has shown that inflation is cooling beyond expectations. Consumer prices grew 1.4% year-on-year, their weakest increase in two years, with the monthly inflation dropping to negative levels. This practically discards another SNB hike at their meeting in December 14, which has eased bullish pressure on the Swissie.

The technical picture shows indecision at current levels, with upside attempts capped at 0.8760 ahead of 0.8815. Support levels are 0.8660 and 0.8560.

Technical levels to watch

USD/CHF

Overview
Today last price	0.872
Today Daily Change	0.0026
Today Daily Change %	0.30
Today daily open	0.8694

Trends
Daily SMA20	0.8877
Daily SMA50	0.8985
Daily SMA100	0.8896
Daily SMA200	0.8968

Levels
Previous Daily High	0.8769
Previous Daily Low	0.868
Previous Weekly High	0.8828
Previous Weekly Low	0.868
Previous Monthly High	0.9113
Previous Monthly Low	0.8685
Daily Fibonacci 38.2%	0.8714
Daily Fibonacci 61.8%	0.8735
Daily Pivot Point S1	0.8659
Daily Pivot Point S2	0.8625
Daily Pivot Point S3	0.857
Daily Pivot Point R1	0.8748
Daily Pivot Point R2	0.8803
Daily Pivot Point R3	0.8838

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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