USD/CHF trades with modest gains near mid-0.9300s, highest since September 30

USD/CHF climbed to the highest level since late September during the early European session.
The uptick seemed unaffected by a softer risk tone, which tends to benefit the safe-haven CHF.
Retreating US bond yields kept the USD on the defensive, though did little to stall the move up.

Haresh Menghani FXStreet

The USD/CHF pair traded with a positive bias through the early European session and was last seen trading near the highest level since late September, just below mid-0.9300s.

Having defended the 0.9300 mark on Tuesday, the USD/CHF pair attracted fresh buying on Wednesday and now seems all set to build on a three-week-old upward trajectory. The uptick seemed unaffected by the prevalent cautious mood, amid concerns over the rising number of COVID-19 cases in Europe, which tends to underpin the safe-haven Swiss franc.

Bulls even shrugged off a subdued US dollar price action, led by retreating US Treasury bond yields. That said, acceptance that the Fed would be forced to hike interest rate sooner than later to contain stubbornly high inflation acted as a tailwind for the greenback. The bets were lifted further after Jerome Powell's renomination for the role of the Fed chair.

Meanwhile, the possibility for an eventual Fed rate hike move by July 2022 already seems to be priced in the markets. This might hold back the USD bulls from placing aggressive bets. However, the Fed funds futures indicate a high likelihood of another raise by November and support prospects for a further near-term appreciating move for the USD/CHF pair.

Market participants now look forward to the US economic docket, highlighting the releases of the Prelim (second estimate) US Q3 GDP, Durable Goods Orders and Core PCE Price Index later during the early North American session. This, along with the FOMC meeting minutes, will influence the USD price dynamics and provide a fresh impetus to the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price	0.934
Today Daily Change	0.0008
Today Daily Change %	0.09
Today daily open	0.9332

Trends
Daily SMA20	0.9198
Daily SMA50	0.9232
Daily SMA100	0.9195
Daily SMA200	0.9173

Levels
Previous Daily High	0.9344
Previous Daily Low	0.9301
Previous Weekly High	0.933
Previous Weekly Low	0.9187
Previous Monthly High	0.9338
Previous Monthly Low	0.9106
Daily Fibonacci 38.2%	0.9328
Daily Fibonacci 61.8%	0.9318
Daily Pivot Point S1	0.9307
Daily Pivot Point S2	0.9283
Daily Pivot Point S3	0.9264
Daily Pivot Point R1	0.9351
Daily Pivot Point R2	0.9369
Daily Pivot Point R3	0.9394

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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