USD/CHF taps into 0.9130 in Monday trading

The USD/CHF differential continues to widen as the US Dollar gains strength and the Swiss Franc swoons.
The SNB's dovish pivot last week continues to drain investor interest in bidding up the CHF.
The Swiss National Bank held off on further rate hikes last Thursday amidst slumping Swiss inflation data.

Joshua Gibson FXStreet

The USD/CHF is pinned to the high side in Monday trading, reaching the 0.9130 region. Another move higher will have the pair testing into new five-month highs.

Last week, the Swiss National Bank (SNB) was unceremoniously knocked off its rate hike cycle, surprising markets and flubbing investor expectations when the SNB failed to raise rates another 25 basis points last Thursday.

Inflation figures for the Swiss domestic economy have been unwinding much faster than the SNB initially thought, and the Swiss central bank was forced to pull the plug on its current rate hike schedule.

Central bank tone determining market momentum with rates unmoving

The Greenback (USD) continues to firm up in markets, bolstered by last week's hawkish Federal Reserve (Fed) showing; while both central banks held rates steady last week, it's the Fed that gets the benefit of the doubt in markets, with the US central bank seeing interest rates staying higher for longer than previously forecast.

This week sees a quiet start to things on the economic calendar, with mid-tier data on offering until Thursday's US Gross Domestic Product (GDP) printing.

Tuesday will bring US housing and consumer confidence figures, while CHF traders will want to keep an eye on Wednesday's ZEW sentiment expectations and the SNB's quarterly bulletin.

USD/CHF technical outlook

Bullish momentum for the US Dollar is pushing the USD/CHF pair higher, and hourly candles are accelerating into the top end. The pair is up over 2% from last week's low near 0.8930, and a fresh push higher will put the pair into new five-month highs.

Daily candlesticks see the USD/CHF pushing above the 200-day Simple Moving Average (SMA) which currently sits near 0.9050, and the 34-day Exponential Moving Average (EMA) has turned bullish, crossing over the 100-day SMA near 0.8900 and set to give prices technical support.

The next significant resistance zone sits at March's swing highs near the 0.9400 handle.

USD/CHF daily chart

USD/CHF technical levels

USD/CHF

Overview
Today last price	0.9119
Today Daily Change	0.0052
Today Daily Change %	0.57
Today daily open	0.9067

Trends
Daily SMA20	0.8917
Daily SMA50	0.8806
Daily SMA100	0.8886
Daily SMA200	0.9035

Levels
Previous Daily High	0.9075
Previous Daily Low	0.9038
Previous Weekly High	0.9078
Previous Weekly Low	0.8932
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.9061
Daily Fibonacci 61.8%	0.9052
Daily Pivot Point S1	0.9045
Daily Pivot Point S2	0.9023
Daily Pivot Point S3	0.9007
Daily Pivot Point R1	0.9082
Daily Pivot Point R2	0.9098
Daily Pivot Point R3	0.912

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.

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