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USD/CHF holds near the 50-day SMA as the dollar stays defensive
The pair was around 0.8091 after backing from 0.8110, while USD/JPY slid to a six-and-a-half-month low near 154.40 and the DXY hovered near a two-week low around 98.90.
FXStreet reports USD/CHF traded with a downside bias on Monday as the US dollar stayed defensive, with broad yen strength weighing on the Greenback. At the time of writing, the pair was around 0.8091 after retreating from an intraday high of 0.8110.
The outlet tied the dollar's softer tone to tighter rate expectations versus the backdrop of robust US employment data and rising oil prices, with Middle East tensions adding to inflation concerns. It also pointed to upcoming US inflation releases, including PPI and CPI later this week, ahead of the Federal Reserve's September 15-16 meeting.
Swiss franc demand was limited despite USD weakness, with FXStreet citing expectations for further monetary tightening by the Bank of Japan that reduce yen appeal for funding carry trades. The report added that the Swiss National Bank's readiness to intervene to curb sharp franc appreciation also restrains demand, leaving USD/CHF technicals near the 50-day SMA.
On technical levels, FXStreet said USD/CHF is holding near the 50-day Simple Moving Average around 0.8091, keeping the near-term outlook neutral. It highlighted resistance around 0.8150 and 0.8200, and support at the psychological 0.8000 area, reinforced by the 100-day SMA, with a daily close below that zone needed to open the door to deeper downside toward the longer-term 200-day SMA around 0.7935.