USD/CHF slides farther below mid-0.9900s, fresh session low


  • Weaker risk sentiment benefitted the CHF’s safe-haven status and exerts some pressure.
  • The USD gains traction amid recovering US bond yields and helped limit further losses.

The USD/CHF pair failed to capitalize on the attempted intraday bounce and is currently placed at the lower end of its daily trading range, just below mid-0.9900s.
 
The pair extended last week's pullback from multi-month tops and remained depressed for the second consecutive session on Monday, though a modest US Dollar uptick helped limit any meaningful downside, at least for the time being. As investors looked past Friday's mixed US monthly jobs report, a goodish pickup in the US Treasury bond yields underpinned the USD demand and turned out to be one of the key factors lending some support to the major.

Weighted down by renewed trade pessimism

However, a slight deterioration in the global risk sentiment, as depicted by a slightly negative mood around equity markets, benefitted traditional safe-haven currencies, like the Swiss Franc and exerted some intraday downward pressure. The not so positive trade-related headlines, wherein Chinese officials were reported to be reluctant to agree to a broad trade deal pursued by the US President Donald Trump dented investors' appetite for perceived riskier assets.
 
Despite the pullback, the pair remained well within its recent trading range held over the past one week or so and warrant some caution for bearish traders. Hence, it will be prudent to wait for a strong follow-through selling before confirming that the pair might have actually topped out in the near-term and positioning for any further near-term depreciating move.
 
In absence of any major market-moving economic releases from the US, Monday's key focus will be on the Fed Chair Jerome Powell's scheduled speech later during the US trading session. Powell's comments will be closely scrutinized for clues about the central bank's policy outlook and provide some meaningful impetus ahead of the upcoming FOMC meeting on October 29-30.

Technical levels to watch

USD/CHF

Overview
Today last price 0.994
Today Daily Change -0.0017
Today Daily Change % -0.17
Today daily open 0.9957
 
Trends
Daily SMA20 0.9929
Daily SMA50 0.9861
Daily SMA100 0.9887
Daily SMA200 0.9951
 
Levels
Previous Daily High 1.0009
Previous Daily Low 0.9927
Previous Weekly High 1.0028
Previous Weekly Low 0.9904
Previous Monthly High 0.9988
Previous Monthly Low 0.9797
Daily Fibonacci 38.2% 0.9959
Daily Fibonacci 61.8% 0.9978
Daily Pivot Point S1 0.992
Daily Pivot Point S2 0.9883
Daily Pivot Point S3 0.9838
Daily Pivot Point R1 1.0002
Daily Pivot Point R2 1.0046
Daily Pivot Point R3 1.0083

 

 

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