The USD/CHF currency pair manages to pare its earlier losses during Thursday’s European session, marking the first rebound in four sessions. The pair finds support around the 200-Hour Moving Average (HMA) and responds positively to hawkish remarks made by Swiss National Bank (SNB) governing board member Andrea Maechler.
Additionally, the pair benefits from a broader retreat of the US Dollar. At present, the pair has rebounded from its intraday low of 0.8965 to 0.8970.
According to Reuters, Maechler stated earlier today that the SNB does not rule out the possibility of further rate hikes. However, the hawkish tone of the Federal Open Market Committee (FOMC) Minutes from the June meeting poses a challenge for the USD/CHF pair, contributing to its rebound from the 200-HMA around 0.8965.
For the pair’s recovery to gain credibility among buyers, it will need to overcome the weekly resistance line located near 0.8995, as well as the psychological level of 0.9000. Traders should also closely monitor today’s US ISM Services PMI and ADP Employment Change for June, as well as developments in China and concerns over a potential recession.
Meanwhile, the USD/CHF bears face a formidable obstacle in the form of an upward-sloping support line originating from June 22, currently positioned around 0.8950. If this support is breached, the pair could decline further towards the yearly low recorded in June, approximately at 0.8900.
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