USD/CHF extends intraday recovery from two-week low and climbs above 0.9700

  • USD/CHF gains some positive traction on Wednesday and reverses some of the previous day’s decline.
  • A positive risk tone weighs on the safe haven CHF and offers support to the pair.
  • High US bond yields help the dollar stop its corrective pullback and provide a modest boost to the pair.

The pair USD/CHF attracts some buying on Wednesday and recoups some of the previous day’s heavy losses to hit a two-week low. The pair continues to rise throughout the European session and has reached a new daily high, just above the 0.9700 level in the last hour.

Although expectations for more aggressive Fed tightening have subsided, investors they seem convinced that the US central bank will carry out a further rate hike later this year to control inflation. The speculations continue supporting elevated Treasury yields and will help the dollar stem its recent corrective pullback from a two-decade high.

The idea of ​​a massive Fed interest rate hike of 100 basis points in July gained traction after the release of US CPI consumer inflation figures, which accelerated to a four-decade high in June. However, several members of the FOMC bucked market expectations, signaling last week that they will probably stick to a 75 basis point rate hike.

On the other hand, a Generally positive tone around equity markets weighed on safe-haven Swiss franc and offered some support to the USD/CHF pair. However, the rally lacked bullish conviction, which warrants caution before confirming that the decline from the 0.9885 region, or a multi-week high hit last Thursday, is over.

Market participants now await the release of US Existing Home Sales data later at the start of the American session. Also, US bond yields should influence the dollar and give the USD/CHF pair some momentum. Investors will follow the signs of risk sentiment in general to take advantage of some short-term opportunities.

USD/CHF technical levels

USD/CHF

Overview
last price today 0.97
daily change today 0.0013
Today’s daily variation in % 0.13
Daily opening today 0.9687
Trends
daily SMA20 0.9683
daily SMA50 0.9731
daily SMA100 0.9587
daily SMA200 0.9397
levels
Previous daily high 0.9787
Previous Daily Low 0.9654
Previous Weekly High 0.9886
Previous Weekly Low 0.9757
Previous Monthly High 1,005
Previous Monthly Low 0.9495
Daily Fibonacci of 38.2% 0.9705
Daily Fibonacci of 61.8% 0.9736
Daily Pivot Point S1 0.9632
Daily Pivot Point S2 0.9576
Daily Pivot Point S3 0.9499
Daily Pivot Point R1 0.9764
Daily Pivot Point R2 0.9842
Daily Pivot Point R3 0.9897

Source: Fx Street

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