- A goodish pickup in the USD demand pushed USD/CHF to multi-day tops on Tuesday.
- Stronger US CPI print cemented hawkish Fed expectations and remained supportive.
- COVID-19 jitters benefitted the safe-haven CHF and might cap the upside for the pair.
The USD/CHF pair jumped to multi-day tops during the early North American session, with bulls now awaiting a sustained move beyond the 0.9200 round-figure mark.
The pair gained strong positive traction on Tuesday and built on the previous day's modest bounce from the 0.9130 area, or near four-week lows. The uptick was exclusively sponsored by a goodish pickup in the US Dollar demand, though worries about the new COVID-19 variants might cap gains for the USD/CHF pair.
The USD remained supported by expectations that the Fed is all set to tighten its monetary policy stance sooner than anticipated. This was reinforced by Tuesday's hotter-than-expected US consumer inflation figures, which showed that the headline CPI accelerated to a 5.4% YoY rate in June from the 5.0% previous.
This, to a larger extent, helped offset a softer tone surrounding the US Treasury bond yields. However, worries about the economic fallout from the spread of the highly contagious Delta variant of the coronavirus underpinned the safe-haven Swiss Franc. This, in turn, kept a lid on any further gains for the USD/CHF pair.
Hence, it will be prudent to wait for some strong follow-through buying before traders start positioning for any further appreciating move. Nevertheless, the USD/CHF pair, for now, seems to have stalled its recent sharp retracement slide from three-month tops, around the 0.9275 region, touched earlier this month.
Technical levels to watch
|Today last price||0.9189|
|Today Daily Change||0.0038|
|Today Daily Change %||0.42|
|Today daily open||0.9151|
|Previous Daily High||0.9171|
|Previous Daily Low||0.9132|
|Previous Weekly High||0.9268|
|Previous Weekly Low||0.9133|
|Previous Monthly High||0.9262|
|Previous Monthly Low||0.8926|
|Daily Fibonacci 38.2%||0.9156|
|Daily Fibonacci 61.8%||0.9147|
|Daily Pivot Point S1||0.9132|
|Daily Pivot Point S2||0.9113|
|Daily Pivot Point S3||0.9093|
|Daily Pivot Point R1||0.9171|
|Daily Pivot Point R2||0.919|
|Daily Pivot Point R3||0.921|
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