• USD/CHF dropped to a one-month low on Friday amid the prevalent USD selling bias.
  • Signs that the Fed could pause the rate hike cycle later this year weighed on the USD.
  • The risk-on impulse undermined the safe-haven CHF and helped limit deeper losses.

The USD/CHF pair remained on the defensive heading into the North American session and was seen trading around the 0.9570 region, or a fresh one-month low.

Minutes from the May 3-4 FOMC meeting released on Wednesday suggested that the Fed could pause the rate hike cycle after two 50 bps hikes each in June and July amid the worsening economic outlook. The speculations were reinforced by the recent slump in the US Treasury bond yields to a multi-week low, which, in turn, weighed on the US dollar and exerted downward pressure on the USD/CHF pair.

That said, the risk-on impulse - as depicted by a generally positive tone around the equity markets - undermine the safe-haven Swiss franc and held back traders from placing aggressive bearish bets around the USD/CHF pair. Apart from this, a modest USD rebound from a fresh monthly low helped limit any further losses, at least for the time being, though any meaningful recovery still seems elusive.

Market participants now look forward to the release of the US April Core PCE Price Index - the Fed's preferred inflation gauge. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the USD/CHF pair. Traders will further take cues from the broader market risk sentiment to grab short-term opportunities on the last day of the week.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9585
Today Daily Change -0.0003
Today Daily Change % -0.03
Today daily open 0.9588
 
Trends
Daily SMA20 0.9822
Daily SMA50 0.9566
Daily SMA100 0.9399
Daily SMA200 0.9306
 
Levels
Previous Daily High 0.9633
Previous Daily Low 0.9583
Previous Weekly High 1.0064
Previous Weekly Low 0.9694
Previous Monthly High 0.9759
Previous Monthly Low 0.9221
Daily Fibonacci 38.2% 0.9602
Daily Fibonacci 61.8% 0.9614
Daily Pivot Point S1 0.957
Daily Pivot Point S2 0.9551
Daily Pivot Point S3 0.9519
Daily Pivot Point R1 0.962
Daily Pivot Point R2 0.9651
Daily Pivot Point R3 0.967

 

 

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