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USD/CHF holds near 0.8000 as Fed hike bets cool
The pair is trading around 0.8060, supported by safe-haven demand amid US-Iran tensions, while traders scale back near-term Fed hike expectations after softer US inflation.
USD/CHF is holding just above its weekly low, trading around 0.8060 in early European hours, after failing to build on a modest intraday rise, according to FXStreet. The dollar is attracting fewer buyers as traders pare expectations for an immediate US Federal Reserve rate hike following soft US inflation data.
FXStreet also points to a counterbalance to the bearish USD outlook, citing concerns that energy-driven factors could keep rate hike prospects on the table. At the same time, escalating US-Iran tensions are supporting the franc as a safe haven and helping limit downside for the currency pair.
On the technical side, the pair has stayed above a key level near 0.8000 that previously acted as resistance before turning into support, as well as above the 200-day Simple Moving Average. Momentum indicators appear mixed, with FXStreet noting the RSI around 52, while the MACD line remains below zero, suggesting any upside would likely be gradual.
FXStreet says a drop would likely draw buying interest near 0.8000, with stronger demand expected around the 200-day SMA near 0.7919. Higher levels to watch include 0.8100, which is described as a near-term hurdle, with a move above it potentially lifting spot toward the mid 0.8100s.