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USD/CHF recovers swiftly from 2-month lows, back above 0.9600 mark

USD/CHF recovers swiftly from 2-month lows, back above 0.9600 mark

  • USD/CHF edged lower amid the emergence of some fresh USD selling pressure.
  • The risk-on mood undermined the safe-haven CHF and helped limit the downside.
  • The pair is yet to confirm a bearish breakthrough a two-month-old trading range.

The USD/CHF pair quickly recovered around 50 pips after hitting fresh two-month lows and jumped to fresh session tops, around the 0.9620 region in the last hour.

Following a brief consolidation through the early part of Tuesday's trading action, the pair edged lower during the early European session. The downfall was sponsored by the emergence of some fresh US dollar selling, albeit the upbeat market mood helped limit deeper losses.

The USD remained depressed on the back of growing optimism over a sharp V-sharp recovery for the global economy. This coupled with the widespread protests in dozens of American cities over the death of George Floyd further undermined the sentiment surrounding the greenback.
 

Meanwhile, the downside remained cushioned, at least for the time being, amid the prevalent risk-on environment, which dented the Swiss franc's safe-haven status. Hence, it will be prudent to wait for some follow-through selling before positioning for any further depreciating move.

Even from a technical perspective, the pair has been showing some resilience below the 0.9600 round-figure mark, which coincides with the lower end of a two-month-old trading range. A convincing breakthrough will set the stage for a fall towards the key 0.9500 psychological mark.

In the absence of any major market-moving economic releases on Tuesday, the broader market risk sentiment might continue to play a key role in influencing the USD/CHF pair. This coupled with the USD price dynamics might contribute to produce some short-term trading opportunities.

Short-term technical outlook

USD/CHF

OVERVIEW
Today last price 0.9615
Today Daily Change 0.0006
Today Daily Change % 0.06
Today daily open 0.9609
 
TRENDS
Daily SMA20 0.9696
Daily SMA50 0.9691
Daily SMA100 0.9683
Daily SMA200 0.9781
 
LEVELS
Previous Daily High 0.9625
Previous Daily Low 0.9579
Previous Weekly High 0.9736
Previous Weekly Low 0.9602
Previous Monthly High 0.9784
Previous Monthly Low 0.9589
Daily Fibonacci 38.2% 0.9597
Daily Fibonacci 61.8% 0.9607
Daily Pivot Point S1 0.9583
Daily Pivot Point S2 0.9558
Daily Pivot Point S3 0.9537
Daily Pivot Point R1 0.963
Daily Pivot Point R2 0.965
Daily Pivot Point R3 0.9676

 

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