USD/CHF struggles near daily lows amid weaker USD, softer risk tone

A combination of factors prompted fresh selling around USD/CHF on Tuesday.
Fading hopes for an early Fed lift-off continued acting as a headwind for the USD.
A softer risk tone benefitted the safe-haven CHF and contributed to the selling bias.

Haresh Menghani FXStreet

The USD/CHF pair maintained its offered tone through the early North American session and dropped to fresh daily lows, around the 0.9115 region in the last hour.

The pair met with some fresh supply on Tuesday and reversed a major part of the previous day's goodish recovery move from over three-week lows, around the 0.9100 round-figure mark. The US dollar continued losing ground amid fading hopes for an earlier Fed lift-off.

The Fed Chair Jerome Powell – during the highly-anticipated speech at the Jackson Hole Symposium on Friday – reassured that the US central bank is in no hurry to raise interest rates. Powell also fell short of providing any specific timeline for the Fed's tapering plan.

Apart from this, a turnaround in the risk sentiment benefitted the safe-haven Swiss franc and exerted downward pressure on the USD/CHF pair. That said, a goodish rebound in the US Treasury bond yields acted as a tailwind for the USD and helped limit losses for the USD/CHF pair.

Market participants now look forward to the US economic docket, featuring the releases of Chicago PMI and the Conference Board's Consumer Confidence Index. This, along with the broader market risk sentiment, might produce some trading opportunities around the USD/CHF pair.

The key focus, however, will remain on the US monthly jobs data, scheduled for release on Friday. The closely-watched NFP report will now play a key role in influencing the USD price dynamics in the near term and provide a fresh directional impetus to the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9125
Today Daily Change	-0.0043
Today Daily Change %	-0.47
Today daily open	0.9168

Trends
Daily SMA20	0.915
Daily SMA50	0.9165
Daily SMA100	0.9115
Daily SMA200	0.9077

Levels
Previous Daily High	0.9185
Previous Daily Low	0.9102
Previous Weekly High	0.92
Previous Weekly Low	0.9106
Previous Monthly High	0.9274
Previous Monthly Low	0.904
Daily Fibonacci 38.2%	0.9153
Daily Fibonacci 61.8%	0.9134
Daily Pivot Point S1	0.9118
Daily Pivot Point S2	0.9068
Daily Pivot Point S3	0.9034
Daily Pivot Point R1	0.9202
Daily Pivot Point R2	0.9235
Daily Pivot Point R3	0.9285

Author

Haresh Menghani

FXStreet

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

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