USD/CHF struggling to remain on-balance for Monday after a test of 0.8800

The USD/CHF briefly tested below 0.8800 on Monday before recovering.
Despite a steady drift lower, the US Dollar continues to find support against the Swiss Franc.
Plenty of back-and-forth for the USD/CHF between Swiss and US economic data releases.

Joshua Gibson FXStreet

The USD/CHF saw a dip back below the 0.8800 price level in Monday's thin trading, and the US Dollar (USD) made a quick recovery against the Swiss Franc (CHF) as investors push towards the middle.

Monday is seeing thin, steady markets as investors gear up for a hectic latter half of the week on the economic calendar, with a decent spread across the board.

Wednesday will kick off this week's meaningful data releases with the Swiss ZEW Survey of Business Expectations at 09:00 GMT. The survey last showed a reading of -37.8 in October as businesses continue to remain pessimistic over the Swiss economy.

According to data compiled by Credit Suisse, Swiss citizens' primary cost concerns center on healthcare, with health insurance, health issues, and premiums taking the top spot in responses, cited by 40% of all polled citizens compared to 24% the year before.

The negative outlook from Swiss citizens is weighing on business expectations, and the Business Expectations Survey's results were the worst showing from the report in almost six months.

On the US side, Gross Domestic Product (GDP) growth figures are due later Wednesday, and markets are broadly expecting an uptick in the annualized quarterly figure from 4.9% to 5.0%.

With markets broadly focused on Fedspeak, Wednesday's Core Personal Consumption Expenditure (PCE) inflation reading for the US will draw some heads as investors try to suss out how far along the path to rate cuts the US truly is.

USD/CHF Technical Analysis

The USD/CHF has been sticking close to median prices at the 50-hour Simple Moving Average (SMA), though overall momentum in the pair has remained down ever since the pair lost grip of the 0.9100 handle back in early October.

Topside momentum remains capped by the 200-hour SMA near 0.8850.

On the daily charts, the USD/CHF is seeing a further extension of the recent bearish momentum, dropping away from the 200-day SMA just south of the 0.900 major handle, and the 50-day SMA is set for a downside acceleration and the 50- and 200-day SMAs are looking at a bearish crossover in short order.

USD/CHF Daily Chart

USD/CHF Levels

USD/CHF

Overview
Today last price	0.8813
Today Daily Change	-0.0007
Today Daily Change %	-0.08
Today daily open	0.882

Trends
Daily SMA20	0.8951
Daily SMA50	0.9011
Daily SMA100	0.8893
Daily SMA200	0.8982

Levels
Previous Daily High	0.8849
Previous Daily Low	0.8811
Previous Weekly High	0.8875
Previous Weekly Low	0.8811
Previous Monthly High	0.9244
Previous Monthly Low	0.8888
Daily Fibonacci 38.2%	0.8825
Daily Fibonacci 61.8%	0.8834
Daily Pivot Point S1	0.8805
Daily Pivot Point S2	0.8789
Daily Pivot Point S3	0.8767
Daily Pivot Point R1	0.8842
Daily Pivot Point R2	0.8864
Daily Pivot Point R3	0.888

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.