USD/CHF rebounds from 8-week lows and points to further gains

Short-term outlook now favors an extension of the correction in USD/CHF after a strong bounce.
Despite falling against US Dollar, Swiss franc gains momentum against its European rivals.

Matías Salord FXStreet

The USD/CHF dropped earlier today to 0.9862, the lowest level since October 16 and then rebounded sharply, amid a rally of the US dollar following US data and on the back of ongoing concerns about Brexit and the Italian budget drama.

The price rose back above 0.9900 and climbed to 0.9921, hitting the highest level since Friday. It was holding near the top, with the bullish tone intact. The greenback reversed after the release of higher-than-expected PPI numbers for November.

The Swiss franc remains supported amid Brexit concerns and also after the Italian finance minister Tria said that the government won't make major changes to the budget. His comments renewed concerns over Italy's budget conflict with the European Commission.

USD/CHF Levels to watch

The pair has risen back above the critical 20-SMA in the four-hour chart that is turning to the upside. If the US dollar holds above 0.9900 the short-term, the technical outlook will remain bullish. Currently is testing the 0.9920, above the next resistance levels might be seen at 0.9940 and 0.9955. On the flip side, the immediate support now is the 0.9900 area, followed by 0.9875 and 0.9860 (Dec 11 low).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD keeps the bid bias just over 1.1800

EUR/USD has started the week on a positive foot, hovering around the 1.1800 region in the latter part of Monday’s session. The pair’s recovery comes on the back of a decent decline in the US Dollar, as investors keep their attention on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD looks stuck around 1.3500 amid firm gains

GBP/USD is pushing further north on Monday, revisiting the 1.3500 hurdle and beyond. Cable’s uptick is largely being fuelled by the broader softness in the Greenback, amid lingering uncertainty around tariffs.

Gold pops above $5,200, four-week highs

Gold is holding onto its bullish tone on Monday, reaching new multi-week highs just past the $5,200 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.