USD/CHF retakes 0.9900 mark amid modest pickup in USD demand, ahead of US ISM PMI

USD/CHF turns positive for the second straight day and draws support from a combination of factors.
Aggressive Fed rate hike bets continue to underpin the USD and remain supportive of the move up.
A positive risk tone dents demand for the safe-haven CHF and provide an additional lift to the major.

Haresh Menghani FXStreet

The USD/CHF pair attracts fresh buying near the 0.9830 region on Monday and turns positive for the second successive day. The intraday move up picks up the pace and lifts spot prices back above the 0.9900 mark, or a three-day high during the first half of the European session.

Following an early dip, the US dollar catches fresh bids on the first day of a new week and allows the USD/CHF pair to capitalize on Friday's strong rally of nearly 150 pips from the 0.9730 area. Apart from this, a modest recovery in the global risk sentiment - as depicted by a positive tone around the US equity futures - undermines the safe-haven Swiss franc and provides an additional lift to the major.

The USD uptick, meanwhile, seems unaffected by a softer tone surrounding the US Treasury bond yields and continues to take cues from expectations that the Fed will stick to its aggressive rate hiking cycle. In fact, the markets have been pricing in another supersized 75 bps Fed rate increase in November. This, in turn, should act as a tailwind for the US bond yields and favours the USD bulls.

Market participants now look forward to the US economic docket, featuring the ISM Manufacturing PMI for a fresh impetus later during the early North American session. The focus, however, will be on Friday's release of the US monthly jobs report, popularly known as NFP. Nevertheless, the USD/CHF pair seems poised to climb further towards the 0.9945-0.9950 supply zone, or a multi-month high set in September.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9908
Today Daily Change	0.0038
Today Daily Change %	0.39
Today daily open	0.987

Trends
Daily SMA20	0.9726
Daily SMA50	0.9647
Daily SMA100	0.9679
Daily SMA200	0.9513

Levels
Previous Daily High	0.9877
Previous Daily Low	0.9738
Previous Weekly High	0.9966
Previous Weekly Low	0.9738
Previous Monthly High	0.9966
Previous Monthly Low	0.948
Daily Fibonacci 38.2%	0.9824
Daily Fibonacci 61.8%	0.9791
Daily Pivot Point S1	0.978
Daily Pivot Point S2	0.969
Daily Pivot Point S3	0.9641
Daily Pivot Point R1	0.9919
Daily Pivot Point R2	0.9967
Daily Pivot Point R3	1.0058

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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