USD/CHF rises towards 0.9000, eyes on bearish SMA cross

The USD/CHF is seen at 0.9015 with 0.15% gains.
The 20-day SMA is about to perform a bearish cross with the 200-day SMA.
Several Fed officials were on the wires but didn’t provide any highlights. Powell speaks on Wednesday.

Patricio Martín FXStreet

The USD/CHF accelerated its gains on Tuesday's session and rose to the 0.9015 zone, with a strong US dollar and a negative market mood contributing to the pair's movements.

As the bears took a breather, the USD/CHF managed to gain additional momentum while there were no highlights during the session. Neel Kashkari, Austan Goolsbee and Michael Barr from the Federal Reserve (Fed) spoke on Tuesday but didn’t provide markets with any new guidance. They were seen as somewhat cautious, welcoming the latest positive inflation figures and still attaching themselves to a data-dependency approach. Chair Powell will speak on Wednesday, where investors will look for further clues on what the Fed will decide in its last meeting of 2023.

As for now, the CME FedWatch tool indicates that the odds of a 25 basis point hike for the December meeting are still low. Next week, the US will report October Consumer Price Index (CPI) data, which will likely make those expectations move based on its outcome.

USD/CHF levels to watch

The daily chart analysis indicates a neutral to bearish outlook for USD/CHF, as the bears seem to be taking a breather after gaining significant ground. The Relative Strength Index (RSI) gained a slight slope in positive territory, while the Moving Average Convergence (MACD) presents decreasing green bars. On the broader picture, markets should we the convergence of the 20 and 200-day Simple Moving Average (SMA) convergence at 0.9000 as they are about to perform a bearish cross, which could reignite the bearish momentum.

Supports: 0.9000 (20 and 200-day SMA convergence), 0.8950, 0.8930.
Resistances: 0.9040, 0.9050, 0.9080

USD/CHF Daily chart

USD/CHF

Overview
Today last price	0.9011
Today Daily Change	0.0021
Today Daily Change %	0.23
Today daily open	0.899

Trends
Daily SMA20	0.9003
Daily SMA50	0.9004
Daily SMA100	0.89
Daily SMA200	0.9003

Levels
Previous Daily High	0.902
Previous Daily Low	0.8954
Previous Weekly High	0.9113
Previous Weekly Low	0.8966
Previous Monthly High	0.9244
Previous Monthly Low	0.8888
Daily Fibonacci 38.2%	0.8979
Daily Fibonacci 61.8%	0.8995
Daily Pivot Point S1	0.8955
Daily Pivot Point S2	0.8921
Daily Pivot Point S3	0.8889
Daily Pivot Point R1	0.9022
Daily Pivot Point R2	0.9054
Daily Pivot Point R3	0.9089

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.