USD/CHF sticks to gains near YTD top, just above mid-0.9300s amid positive risk tone

A combination of factors pushed USD/CHF to a fresh YTD high on Monday.
Signs of stability in the financial markets undermined the safe-haven CHF.
Elevated US bond yields benefitted the USD and further extended support.

Haresh Menghani FXStreet

The USD/CHF pair maintained its bid tone through the early European session and was last seen trading just above mid-0.9300s, or the highest level since November 2021.

The pair built on Friday's bullish breakout momentum through the 0.9300 mark and gained follow-through traction for the third successive day on Monday. This also marked the fifth day of a positive move in the previous six and was sponsored by a combination of factors. Signs of stability in the financial markets undermined the safe-haven Swiss franc and acted as a tailwind for the USD/CHF pair amid modest US dollar strength.

Investors turned optimistic amid fresh hopes for a diplomatic solution to end the war in Ukraine. In fact, Ukrainian negotiator Mykhailo Podolyak said that Russia is beginning to talk constructively, and we will achieve some results in a matter of days. Moreover, a Russian delegate to the talks, Leonid Slutsky noted that they had made significant progress and the delegations could soon reach draft agreements.

On the other hand, the USD drew support from elevated US Treasury bond yields and stood tall near the YTD high touched last week. The recent monster gains in commodity prices have been fueling concerns about a major inflationary shock, which reinforced bets for an imminent start of the policy tightening by the Fed and pushed the US bond yields higher. This was seen as another factor that extended some support to the USD/CHF pair.

The momentum pushed spot prices further beyond the previous YTD high and might have triggered some short-term trading stops. Hence, the uptick could further be attributed to some technical buying, though bulls seemed reluctant to place aggressive bets. Investors preferred to wait for fresh developments surrounding the Russia-Ukraine saga and ahead of a two-day FOMC monetary policy meeting, starting this Thursday.

Technical levels to watch

USD/CHF

Overview
Today last price	0.936
Today Daily Change	0.0012
Today Daily Change %	0.13
Today daily open	0.9348

Trends
Daily SMA20	0.923
Daily SMA50	0.9215
Daily SMA100	0.9211
Daily SMA200	0.9195

Levels
Previous Daily High	0.935
Previous Daily Low	0.9291
Previous Weekly High	0.935
Previous Weekly Low	0.9166
Previous Monthly High	0.9297
Previous Monthly Low	0.915
Daily Fibonacci 38.2%	0.9327
Daily Fibonacci 61.8%	0.9313
Daily Pivot Point S1	0.931
Daily Pivot Point S2	0.9271
Daily Pivot Point S3	0.925
Daily Pivot Point R1	0.9369
Daily Pivot Point R2	0.9389
Daily Pivot Point R3	0.9428

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD rebounds from session lows, stays below 1.1650

EUR/USD is recovers modestly from session lows but remains in the red below 1.1650 in European trading on Thursday. The pair faces headwinds from a renewed uptick in the US Dollar amid a negative shift in risk sentiment. Surging energy prices due to the Middle East war keep the bearish pressure intact on the Euro. The US Jobless Claims data are next of note.

GBP/USD stays weak near 1.3350 amid UK stagflation risks

GBP/USD sticks to losses near 1.3350 in the European session on Thursday. The Pound Sterling loses ground amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, while the US Dollar attracts fresh havem demand ahead of the US Jobless Claims data.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Three reasons to be bearish on Bitcoin

Bitcoin is holding up well taking into account the uncertainty stemming from the Middle East. Despite this week’s rally, the long-term outlook remains bearish. Here are three reasons why I think the storm for the largest cryptocurrency isn't over yet.

FX alert: When Energy still writes the macro script the Dollar holds the pen

The market is quietly sliding back into the trade nobody wanted to own, but everyone now has to respect again. The no quick off-ramp trade. Yesterday’s bounce in risk assets already looks less like a turning point and more like a classic relief rally in a market that briefly inhaled before realizing the room was still on fire.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.