USD/CHF once again fails near 200-DMA, eyeing US macro data for fresh impetus

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USD/CHF once again fails near 200-DMA, eyeing US macro data for fresh impetus

  • The USD remains well supported by rising US bond yields but did little to provide any impetus.
  • Bulls also seemed rather unaffected by risk-on mood, which dents the CHF’s safe-haven status.

The USD/CHF pair traded with a mild negative bias through the mid-European session and is currently placed at the lower end of its daily trading range, around the 0.9925-20 region.

The pair failed to capitalize on this week’s goodish rebound from three-week lows and once again faced rejection near the very important 200-day SMA. The pair met with some fresh supply on the last trading day of the week and for now, seems to have snapped two consecutive days of winning streak.

Stronger USD /risk-on mood failed to impress bulls

Bulls seemed rather unimpressed by the prevalent stronger sentiment surrounding the US Dollar – further backed by a goodish pickup in the US Treasury bond yields on Friday – and a positive mood around equity markets, which tends to weigh on traditional safe-haven currencies – including the Swiss Franc.

Despite the reports related to an impeachment inquiry against the US President Donald Trump and the subsequent release of the full complaint letter from the ‘whistleblower’, the recent encouraging trade-related developments lifted the key USD Index to fresh two-week tops on Friday and remained supportive of improving risk sentiment.

Hence, the downtick could be solely attributed to some technical selling from a key technical barrier and warrant caution before placing any aggressive bets for any further downfall ahead of Friday’s US macro releases – durable goods orders data and core PCE price index (the Fed preferred inflation gauge).

Friday’s US economic docket also highlights the release of Personal Income, Personal Spending and the final version of the September UoM Consumer Sentiment Index, which might further contribute towards producing some meaningful trading opportunities on the last day of the week.

Technical levels to watch


Today last price 0.9927
Today Daily Change -0.0009
Today Daily Change % -0.09
Today daily open 0.9936
Daily SMA20 0.9903
Daily SMA50 0.9849
Daily SMA100 0.9895
Daily SMA200 0.9949
Previous Daily High 0.9949
Previous Daily Low 0.9905
Previous Weekly High 0.9984
Previous Weekly Low 0.9864
Previous Monthly High 0.9976
Previous Monthly Low 0.9659
Daily Fibonacci 38.2% 0.9932
Daily Fibonacci 61.8% 0.9922
Daily Pivot Point S1 0.9911
Daily Pivot Point S2 0.9886
Daily Pivot Point S3 0.9867
Daily Pivot Point R1 0.9955
Daily Pivot Point R2 0.9974
Daily Pivot Point R3 0.9999
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