USD/CHF’s reversal from 0.9345 extends below 0.9300

The US dollar accelerates its downtrend and reaches levels below 0.9300.
Hopes of a slowdown in Fed tightening are hurting the USD.
News that China is easing covid restrictions further has boosted market mood.

Guillermo Alcala FXStreet

The US Dollar resumed its near-term downtrend against the Swiss Franc on Tuesday, with the pair extending its pullback from last week’s highs at 0.9345 to levels below 0.9300. The pair drops about 0.5% so far today, retracing the previous three day’s recovery.

Hopes of Fed easing are hurting the Dollar

US macroeconomic figures released last Friday have boosted hopes of a slowdown on the Federal Reserve’s monetary tightening path in 2023, which has hurt demand for the Greenback.

The US Core Personal Consumption Expenditures Price Index, a gauge closely observed by the Fed to assess inflationary trends, eased in November for the third consecutive month, suggesting that the price pressures might have started a deceleration trend.

Furthermore, consumer spending remained practically unchanged from the previous months. These figures pave the way for the Federal Reserve to ease its tightening path.

On the other hand, Chinese authorities have announced the end of COVID-19 restrictions for inbound travelers. The National Health Committee assured that from January 8, quarantines for visitors to China will be scrapped, which has boosted risk appetite in an otherwise quiet post-Christmas market, adding selling pressure to the safe-haven USD.

Technical levels to watch

USD/CHF

Overview
Today last price	0.928
Today Daily Change	-0.0058
Today Daily Change %	-0.62
Today daily open	0.9338

Trends
Daily SMA20	0.9353
Daily SMA50	0.9596
Daily SMA100	0.9662
Daily SMA200	0.9645

Levels
Previous Daily High	0.9338
Previous Daily Low	0.9338
Previous Weekly High	0.9348
Previous Weekly Low	0.9227
Previous Monthly High	1.0148
Previous Monthly Low	0.9357
Daily Fibonacci 38.2%	0.9338
Daily Fibonacci 61.8%	0.9338
Daily Pivot Point S1	0.9338
Daily Pivot Point S2	0.9338
Daily Pivot Point S3	0.9338
Daily Pivot Point R1	0.9338
Daily Pivot Point R2	0.9338
Daily Pivot Point R3	0.9338

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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