USD/CHF retreats from multi-month highs, trades below 0.9300

USD/CHF rose to its strongest level since April at 0.9334.
Falling US T-bond yields and risk aversion weighs on USD/CHF.
US Dollar Index stays in the positive territory above 93.00.

Eren Sengezer FXStreet

Following the previous week's sharp upsurge, the USD/CHF pair edged higher during the Asian trading hours and touched its strongest level in more than five months at 0.9334. However, the pair reversed its direction amid the souring market mood and was last seen losing 0.4% on the day at 0.9285.

Eyes on Wall Street

Concerns over the Evergrande crisis in China crippling the global economic growth force investors to seek refuge at the start of the week. Currently, the S&P 500 Futures are down 1.7%, suggesting that Wall Street's main indexes will suffer heavy losses after the opening bell on Monday. Additionally, the benchmark 10-year US T-bond yield is down more than 3%, helping CHF find demand.

On the other hand, the US Dollar Index stays in the positive territory above 93.30, limiting USD/CHF's downside for the time being.

There won't be any high-tier data releases from the US in the remainder of the day and the risk perception is likely to continue to dominate USD/CHF's movements.

USD/CHF near-term outlook

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, thinks that USD/CHF needs to drop below 0.9168 to alleviate the immediate upside pressure.

USD/CHF is in five-month highs, 0.9337 next target on the upside – Commerzbank.

Technical levels to watch for

USD/CHF

Overview
Today last price	0.9286
Today Daily Change	-0.0036
Today Daily Change %	-0.39
Today daily open	0.9322

Trends
Daily SMA20	0.9179
Daily SMA50	0.9163
Daily SMA100	0.912
Daily SMA200	0.9092

Levels
Previous Daily High	0.9325
Previous Daily Low	0.926
Previous Weekly High	0.9325
Previous Weekly Low	0.9164
Previous Monthly High	0.9242
Previous Monthly Low	0.9019
Daily Fibonacci 38.2%	0.93
Daily Fibonacci 61.8%	0.9285
Daily Pivot Point S1	0.928
Daily Pivot Point S2	0.9237
Daily Pivot Point S3	0.9215
Daily Pivot Point R1	0.9345
Daily Pivot Point R2	0.9368
Daily Pivot Point R3	0.941

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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