USD/CHF retreats from 1-week tops, drops to session lows post-SNB

The USD remains on the defensive amid increasing Fed rate cut bets.
The prevalent cautions mood underpins CHF’s safe-haven demand.
SNB leaves interest rates unchanged and does little to move the pair.

Haresh Menghani FXStreet

The USD/CHF pair dropped to the lower end of its sideways consolidative trading range, around the 0.9930 region post-SNB.

The pair failed to capitalize on this week's goodish recovery move from closer to multi-month lows, with a combination of negative forces capping the up-move below the very important 200-day SMA.

The US Dollar struggled to preserve the overnight recovery gains and remained on the defensive amid firming expectations that the Fed will eventually move to cut interest rates by the end of this year.

The pair was further pressurized by the prevalent cautions mood in the wake of fears of a further escalation in the US-China trade tensions, which benefitted the Swiss Franc's relative safe-haven status.

The pair, for now seems to have snapped three consecutive days of winning streak and had a rather muted reaction to the latest SNB monetary policy decision to hold sight deposit interest rate unchanged at -0.75%.

Market participants now look forward to the post-meeting press conference, where comments by the SNB Chairman and Governing Board Members might contribute towards producing some trading opportunities.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9951
Today Daily Change	-0.0003
Today Daily Change %	-0.03
Today daily open	0.9954

Trends
Daily SMA20	1.0009
Daily SMA50	1.0075
Daily SMA100	1.0037
Daily SMA200	0.9967

Levels
Previous Daily High	0.996
Previous Daily Low	0.9902
Previous Weekly High	1.0017
Previous Weekly Low	0.9854
Previous Monthly High	1.0227
Previous Monthly Low	1
Daily Fibonacci 38.2%	0.9938
Daily Fibonacci 61.8%	0.9924
Daily Pivot Point S1	0.9917
Daily Pivot Point S2	0.9881
Daily Pivot Point S3	0.9859
Daily Pivot Point R1	0.9975
Daily Pivot Point R2	0.9997
Daily Pivot Point R3	1.0033

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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