- USD/CHF continued losing ground for the fourth consecutive session amid sustained USD selling.
- Dovish Fed expectations continued acting as a headwind for the greenback and exerted pressure.
- The risk-on environment did little to weigh on the safe-haven CHF or lend any support to the pair.
The USD/CHF pair weakened further below the key 0.9000 psychological mark and dropped to the lowest level since February 24 during the mid-European session.
The pair prolonged its recent bearish trajectory and witnessed some follow-through selling on the first day of a new trading week. This marked the fourth consecutive day of a negative move and was exclusively sponsored by the prevalent bearish sentiment surrounding the US dollar.
The USD struggled to capitalize/preserve its modest intraday gains, instead met with some fresh supply and dropped to near two-and-half-month lows amid dovish Fed expectations. Friday's dismal US monthly jobs report reaffirmed that the Fed will keep interest rates low for a longer period.
The headline NFP showed that the US economy added only 266K jobs in April, far lower than consensus estimates pointing to a reading of nearly one million. Adding to this, the previous month's reading was revised down and the unemployment rate edged higher to 6.1% from 6.0% in March.
Meanwhile, the underlying bullish tone in the financial markets, which tends to weigh on the safe-haven Swiss franc, also did little to lend any support to the USD/CHF pair. That said, slightly oversold conditions on short-term charts might help limit the downside, at least for now.
There isn't any major market-moving economic data due for release from the US on Monday. Hence, the USD price dynamics will continue to play a key role in influencing the USD/CHF pair. Apart from this, the broader market risk sentiment will also be looked upon for some trading opportunities.
Technical levels to watch
|Today last price||0.8988|
|Today Daily Change||-0.0016|
|Today Daily Change %||-0.18|
|Today daily open||0.9004|
|Previous Daily High||0.9094|
|Previous Daily Low||0.9004|
|Previous Weekly High||0.9165|
|Previous Weekly Low||0.9004|
|Previous Monthly High||0.9473|
|Previous Monthly Low||0.908|
|Daily Fibonacci 38.2%||0.9038|
|Daily Fibonacci 61.8%||0.9059|
|Daily Pivot Point S1||0.8974|
|Daily Pivot Point S2||0.8944|
|Daily Pivot Point S3||0.8883|
|Daily Pivot Point R1||0.9064|
|Daily Pivot Point R2||0.9124|
|Daily Pivot Point R3||0.9154|
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