- USD/CHF remained under some selling pressure for the third successive day on Thursday.
- The post-US CPI USD selling, along with the cautious market mood exerted some pressure.
- Bears now await a sustained break below the monthly swing low before placing fresh bets.
The USD/CHF pair maintained its offered tone through the first half of the European session and was last seen trading near the 0.9125-20 region, or a two-week low.
The pair extended this week's sharp retracement slide from the 0.9275-80 region, or a multi-week high and witnessed some follow-through selling for the third successive day on Thursday. The US dollar extended its post-US CPI downfall and was seen as a key factor dragging the USD/CHF pair lower.
Against the backdrop of Fed Chair Jerome Powell's less hawkish comments, the USD witnessed a typical “sell the fact” kind of trade despite strong US consumer inflation figures. Even rebounding US Treasury bond yields did little to impress the USD bulls or lend any support to the USD/CHF pair.
Apart from this, the cautious mood around the equity markets benefitted the Swiss franc's relative safe-haven status and exerted additional downward pressure on the USD/CHF pair. The downfall could further be attributed to some technical selling below the 200-DMA support, around the 0.9165-60 area.
With the latest leg down, the USD/CHF pair has lost around 150 pips from the weekly swing high and might now aim to challenge the 0.9100 mark, or monthly low. A convincing break below the mentioned handle will be seen as a fresh trigger for bearish trades and pave the way for further losses.
Market participants now look forward to the US macro data – the Producer Price Index (PPI) and the usual Weekly Initial Jobless Claims. This, along with the broader market risk sentiment, will be looked upon for some short-term trading opportunities later during the early North American session.
Technical levels to watch
|Today last price||0.9123|
|Today Daily Change||-0.0015|
|Today Daily Change %||-0.16|
|Today daily open||0.9138|
|Previous Daily High||0.9244|
|Previous Daily Low||0.913|
|Previous Weekly High||0.9232|
|Previous Weekly Low||0.9113|
|Previous Monthly High||0.9295|
|Previous Monthly Low||0.9102|
|Daily Fibonacci 38.2%||0.9174|
|Daily Fibonacci 61.8%||0.9201|
|Daily Pivot Point S1||0.9097|
|Daily Pivot Point S2||0.9056|
|Daily Pivot Point S3||0.8983|
|Daily Pivot Point R1||0.9212|
|Daily Pivot Point R2||0.9285|
|Daily Pivot Point R3||0.9326|
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