USD/CHF reverses a dip to session lows, back around 0.9980 level


  • Dismal US data prompts some USD weakness and exert fresh pressure.
  • The downside remains cushioned ahead of Wednesday’s FOMC decision.

The USD/CHF pair refreshed daily lows, around the 0.9965 region in reaction to dismal US regional manufacturing index, albeit quickly recovered few pips thereafter.

The US Dollar failed to capitalize on Friday's mostly upbeat US retail sales data-led recovery move and remained depressed on the first day of a new trading week, which was seen as one of the key factors that kept a lid on the pair's initial uptick to two-week tops. 

The greenback lost some additional ground amid an intraday turnaround in the US Treasury bond yields following the latest disappointment from the Empire State Manufacturing Index, which collapsed to -8.6 in June and marked its lowest level since Oct. 2016. 

Adding to this, persistent worries over a further escalation in trade tensions between the world's two largest economies and heightened geopolitical risks in the Middle East further benefitted the Swiss Franc's relative safe-haven status and collaborated to the intraday slide.

The downside, however, remained cushioned, at least for the time being, as investors now seemed reluctant to place any aggressive bets ahead of the next big event risk - the highly anticipated FOMC monetary policy update, scheduled to be announced on Wednesday.

The US central bank is widely expected to leave interest rates unchanged and hence, the key focus will be on the updated economic/interest rate projections, which should play an important role in determining the pair's next leg of a directional move.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9977
Today Daily Change -0.0010
Today Daily Change % -0.10
Today daily open 0.9987
 
Trends
Daily SMA20 0.9995
Daily SMA50 1.0073
Daily SMA100 1.0038
Daily SMA200 0.9969
Levels
Previous Daily High 0.9996
Previous Daily Low 0.9925
Previous Weekly High 0.9996
Previous Weekly Low 0.9885
Previous Monthly High 1.0227
Previous Monthly Low 1
Daily Fibonacci 38.2% 0.9969
Daily Fibonacci 61.8% 0.9952
Daily Pivot Point S1 0.9943
Daily Pivot Point S2 0.9898
Daily Pivot Point S3 0.9872
Daily Pivot Point R1 1.0014
Daily Pivot Point R2 1.004
Daily Pivot Point R3 1.0085

 

 

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