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USD/CHF holds near 0.8112 after rebounding from a week low
Analysts at MUFG/BTMU said the dollar index has not yet tested its 200-day moving average near 99.20, while softer US data has led markets to scale back Fed rate hike expectations.
USD/CHF rebounded on Monday as the US dollar recovered from early losses, trading around 0.8112 after dipping to 0.8072 intraday, its lowest level in over a week, according to FXStreet.
FXStreet noted the US Dollar Index, or DXY, was around 99.60 after recovering from 99.30, its lowest level since June 5, and said MUFG/BTMU highlighted that the DXY has not yet tested support from its 200-day moving average near 99.20.
The report also pointed to a shift in expectations for US policy rates, saying softer US economic data has encouraged market participants to reduce Fed rate hike expectations, which is seen as less supportive for sustained dollar strength.
On the technical side, FXStreet said USD/CHF has a mild bullish bias after reclaiming key moving averages and the 0.8000 psychological level earlier in June, but momentum is weak, with the RSI near neutral around 52 and ADX near 16. It outlined resistance at 0.8150 and 0.8200, while near-term support sits near the 50-day SMA around 0.8082, followed by 0.8000, with deeper levels at the 100-day SMA near 0.7974 and the 200-day SMA near 0.7932.
Latest closeDollar index 99.64 ▼0.3%