• USD/CHF gained traction for the fifth successive day amid sustained USD buying.
  • The Fed’s hawkish outlook, elevated US bond yields underpinned the greenback.
  • The risk-off mood extended support to the safe-haven CHF and capped the upside.

The USD/CHF pair maintained its bid tone through the first half of the European session and was last seen trading near a one-month high, just below mid-0.9400s.

The pair built on last week's breakout momentum through the 0.7370-0.7375 horizontal resistance and gained traction for the fifth successive day on Monday. The momentum pushed spot prices back closer to the YTD peak touched in March and was sponsored by sustained US dollar buying interest.

The greenback held steady near its highest level since April 2020 and continued drawing support from expectations for a more aggressive policy tightening by the Fed. The markets seem convinced that the US central bank would hike interest rates at a faster pace to combat stubbornly high inflation.

The bets were reaffirmed by New York Fed President John Williams's hawkish remarks on Thursday, which was seen as a further sign that even more cautious policymakers are on board for bigger rate hikes. This, along with elevated US Treasury bond yields, acted as a tailwind for the greenback.

Investors also seem worried that a protracted Russia-Ukraine war-led rise in commodity prices would put upward pressure on the already high inflation. Apart from this, hawkish Fed expectations pushed the US bond yields to a fresh multi-year peak, which offered additional support to the buck.

That said, the prevalent risk-off mood - as depicted by a generally weaker tone around the equity markets - drove some haven flows towards the Swiss franc and acted as a headwind for the USD/CHF pair. Moreover, holiday-thinned liquidity held back traders from placing aggressive bets.

Nevertheless, the bias remains tilted firmly in favour of bulls and supports prospects for a further near-term appreciating move for the USD/CHF pair. Some follow-through buying beyond the previous swing high, around the 0.9460 region, will add credence to the near-term positive outlook.

Technical levels to watch


Today last price 0.9438
Today Daily Change 0.0005
Today Daily Change % 0.05
Today daily open 0.9433
Daily SMA20 0.9317
Daily SMA50 0.9281
Daily SMA100 0.9241
Daily SMA200 0.922
Previous Daily High 0.9443
Previous Daily Low 0.9413
Previous Weekly High 0.9443
Previous Weekly Low 0.9287
Previous Monthly High 0.946
Previous Monthly Low 0.915
Daily Fibonacci 38.2% 0.9432
Daily Fibonacci 61.8% 0.9425
Daily Pivot Point S1 0.9416
Daily Pivot Point S2 0.9399
Daily Pivot Point S3 0.9386
Daily Pivot Point R1 0.9447
Daily Pivot Point R2 0.946
Daily Pivot Point R3 0.9477



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD drops below 1.0550 as dollar gathers strength

EUR/USD drops below 1.0550 as dollar gathers strength

EUR/USD has lost its traction and declined below 1.0550 in the early American session on Tuesday. Hawkish comments from NY Fed President Williams and upbeat trade balance data from the US seem to be helping the dollar gather strength against its major rivals.


GBP/USD loses traction, closes in on 1.2200

GBP/USD loses traction, closes in on 1.2200

GBP/USD has turned south in the American session and slid toward 1.2200. The US Dollar Index continues to push higher above 104.00, suggesting that the dollar's valuation drives the pair's action ahead of consumer confidence data.


Gold bears eye $1,820 and $1,816 as next targets

Gold bears eye $1,820 and $1,816 as next targets

Optimism prevails, pointing to a turnaround Tuesday for the financial markets, as the previous week’s upbeat global momentum returns and caps the broad US dollar recovery. Investors remain wary ahead of the key NATO Summit.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!