USD/CHF technical analysis: Breaks below 0.9940 confluence support, turns vulnerable

The pair remains under some selling pressure for the second straight session.
The ongoing slide dragged it below a two-month-old ascending trend-channel.
Bears might now aim towards challenging the 0.9900 round-figure mark.

Haresh Menghani FXStreet

The USD/CHF pair extended this week's rejection slide from the vicinity of the key parity mark and remained under some selling pressure for the second consecutive session.

The ongoing slide to one-week lows has now dragged the pair below a confluence support near the 0.9940 region, which might now be seen as a key trigger for bearish traders.

The mentioned support comprised of 23.6% Fibonacci level of the pair’s 0.9659-1.0028 recent strong move up and the lower end of a two-month-old ascending trend-channel.

Meanwhile, technical indicators on the 4-hourly chart have been falling in the bearish territory and also lost positive momentum on the daily chart, suggesting further downside.

However, oscillators on the 1-hourly chart have moved closer to slightly oversold conditions and thus, warrant some caution before placing any aggressive bearish bets.

Having said that, the pair still seems vulnerable to continue with its depreciating move and aim towards challenging the 0.9900 handle amid reviving safe-haven demand.

USD/CHF daily chart

USD/CHF

Overview
Today last price	0.9933
Today Daily Change	-0.0017
Today Daily Change %	-0.17
Today daily open	0.995

Trends
Daily SMA20	0.9943
Daily SMA50	0.988
Daily SMA100	0.9879
Daily SMA200	0.9956

Levels
Previous Daily High	0.9992
Previous Daily Low	0.9945
Previous Weekly High	0.9991
Previous Weekly Low	0.9904
Previous Monthly High	0.9988
Previous Monthly Low	0.9797
Daily Fibonacci 38.2%	0.9963
Daily Fibonacci 61.8%	0.9974
Daily Pivot Point S1	0.9933
Daily Pivot Point S2	0.9915
Daily Pivot Point S3	0.9886
Daily Pivot Point R1	0.998
Daily Pivot Point R2	1.0009
Daily Pivot Point R3	1.0027

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD bounces off nearly two-month low; upside seems limited

AUD/USD rebounds from its lowest level since April 13, touched during the Asian session on Monday, as the US Dollar pauses following Friday's upbeat US NFP-led blowout rally to a two-month high. However, persistent geopolitical uncertainties, along with surging bets on Fed rate hikes, might continue to act as a tailwind for the USD. Furthermore, diminishing odds of a near-term RBA rate hike should cap gains for the Aussie.

USD/JPY bulls seem hesitant amid intervention fears

USD/JPY touches a fresh high since late April following an Asian session dip, though intervention fears limit losses for the Japanese Yen (JPY) and cap the upside. This counters Japan’s revised GDP print, which confirmed that the economy lost momentum in the first quarter. Meanwhile, Friday's upbeat US NFP report lifted bets of a Fed rate hike and favors the US Dollar bulls, backing the case for a further move higher for the currency pair.

Gold recovers slightly from the $4,300 neighborhood; not out of the woods yet

Gold attracts some buyers at the start of a new week and reverses part of Friday's decline to its lowest since March 24, around the $4,300 mark. The US Dollar pauses after Friday’s upbeat US NFP-led blowout rally to a two-month high and supports the bullion. However, a surge in bets on a Fed rate hike, along with geopolitical uncertainties, favors USD bulls. The backs the case for the emergence of fresh sellers around the precious metal at higher levels.

Week ahead: Fed countdown begins amid US inflation data and geopolitical risks

The countdown to the biggest event of the year so far, the first Fed meeting under Chair Warsh on June 17, has officially commenced. Next week’s key events could serve as the best appetizer for Warsh’s first press conference, although market participants will probably be distracted by developments elsewhere.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.