Search ForexCrunch
  • Modest USD weakness on Monday weighs on the pair.
  • Wall Street looks to open the day flat.

The USD/CHF pair, which lost more than 50 pips last week, extended its slide on Monday and tested the critical parity mark for the first time since early March. At the moment, the pair is down 0.1% on a daily basis at 1.0007.

In the absence of significant macroeconomic data releases today, the bearish pressure on the USD remained intact on Monday and allowed the pair to push lower with the US Dollar Index slumping to its lowest level in two weeks at 96.38. Ahead of the NAHB Housing Market Index, which is unlikely to trigger a meaningful market reaction, the DXY is losing 0.06% on the day at 96.45.

The next significant driver for the greenback will be this Wednesday’s FOMC statement, which will include the updated dot plot. Previewing the event, “We expect Fed to lower its ‘dot’ signal further to just one rate hike in 2019 (down from two). We expect them to be revised lower also for 2020 and 2021 and we will not be surprised if the Fed signals one and done,” Danske Bank analysts argued.  

In the next hour, markets will be paying attention to Wall Street’s opening to see if the risk perception can be a catalyst. Nonetheless, the S&P 500 Futures is up only 0.08% on the day, suggesting that stocks are likely to stay quiet on Monday.

Key technical levels


       Daily SMA20:  1.0031
       Daily SMA50:  0.9979
       Daily SMA100:  0.9971
       Daily SMA200:  0.992
       Previous Daily High:  1.0053
       Previous Daily Low:  1.001
       Previous Weekly High:  1.012
       Previous Weekly Low:  1.001
       Previous Monthly High:  1.01
       Previous Monthly Low:  0.9921
       Daily Fibonacci 38.2%:  1.0026
       Daily Fibonacci 61.8%:  1.0037
       Daily Pivot Point S1:  1.0003
       Daily Pivot Point S2:  0.9985
       Daily Pivot Point S3:  0.996
       Daily Pivot Point R1:  1.0046
       Daily Pivot Point R2:  1.0071
       Daily Pivot Point R3:  1.0089