USD/CHF advances as markets await a fresh catalyst


  • USD/CHF shows mild gains near the 0.8800 area.
  • The pair continues to trade sideways since early August.
  • Hawkish comments from Fed’s Thomas Barking gave the USD a boost.
  • Investors await Powell’s speech on Friday and Wednesday’s US August PMIs.

On Tuesday, the USD/CHF traded with mild gains, near the critical 0.8800 zone. On the US side, Thomas Barking from the Federal Reserve (Fed) commented that more tightening may be needed while investors await Wednesday’s PMIs from August and Jerome Powell’s Friday speech. On the CHF side, Switzerland reported a higher than expected Trade Balance deficit in July, which seems to be pressuring the CHF. Besides that, no relevant data will be released on the Swiss front for the rest of the week.

That said, the USD measured by the DXY index upside potential is limited in a risk-positive market environment, with major US stock indexes closing green on Monday’s session. On a positive note, Thomas Barkin from the Fed delivered hawkish comments and stated , “If inflation remains high and demand gives no signal that it is likely to drop, that would require a tighter monetary policy”. As a reaction, US Treasury yields recovered some ground, and hawkish bets may limit further losses for the USD.

Attention is now set to the Jackson Hole Symposium, which will kick off on Thursday, and S&P Global Manufacturing figures from the US from July on Wednesday. Those figures are expected to show a decelerating economic activity but remain in expansion territory and will help investors model their expectations towards the next Federal Reserve (Fed) meeting. As for now, markets are still confident that the Fed will pause in September and then bet on higher odds of a hike in November of 25 basis points (bps)


USD/CHF Levels to watch

Analysing the daily chart, it is apparent that the USD/CHF has a neutral to bullish technical stance, with the bulls gradually recovering ground but still not in command. The Relative Strength Index (RSI) indicates positive momentum with an ascending slope above its midline, while the Moving Average Convergence (MACD) lays out flat green bars.On the other hand, the pair is above the 20-day Simple Moving Average (SMA) but below the 100 and 200-day Simple Moving Average (SMAs), suggesting that despite the recent bearish sentiment, the bulls are still resilient, holding some momentum.

Support levels: 0.8750 (20-day SMA), 0.8730, 0.8715.

Resistance levels: 0.8800, 0.8820, 0.8850.

USD/CHF Daily chart

 

USD/CHF

Overview
Today last price 0.8796
Today Daily Change 0.0011
Today Daily Change % 0.13
Today daily open 0.8785
 
Trends
Daily SMA20 0.8745
Daily SMA50 0.881
Daily SMA100 0.8899
Daily SMA200 0.9097
 
Levels
Previous Daily High 0.8828
Previous Daily Low 0.878
Previous Weekly High 0.8828
Previous Weekly Low 0.8738
Previous Monthly High 0.9005
Previous Monthly Low 0.8552
Daily Fibonacci 38.2% 0.8798
Daily Fibonacci 61.8% 0.881
Daily Pivot Point S1 0.8767
Daily Pivot Point S2 0.875
Daily Pivot Point S3 0.8719
Daily Pivot Point R1 0.8815
Daily Pivot Point R2 0.8846
Daily Pivot Point R3 0.8863

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

EUR/USD treads water just above 1.0400 post-US data

Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

GBP/USD remains depressed near 1.2520 on stronger Dollar

Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

Gold keeps the bid bias unchanged near $2,700

Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.

Gold News
Geopolitics back on the radar

Geopolitics back on the radar

Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures