USD/CHF Stuck Below 0.8100 Amid Fed Hike Uncertainty
The USD/CHF pair continues to struggle below the 0.8100 mark on Monday's European session, unable to attract significant buyers after a disappointing US Nonfarm Payrolls report last Friday.
The NFP numbers tempered bets for an immediate interest rate hike by the Federal Reserve, which in turn has undermined the US Dollar and capped the USD/CHF pair.
Despite this, investors still expect the Fed to raise borrowing costs by the end of the year due to inflation risks stemming from energy supply disruptions and geopolitical uncertainties.
A key technical support level for the bears is the 50-day Simple Moving Average (SMA), which if broken would pave the way for a decline to the dense Fibonacci support band between 0.8037 and 0.7932, or even lower to structural floors at 0.7857 and 0.7761.
The Relative Strength Index (RSI) hovers just below the 50 line, while the Moving Average Convergence Divergence (MACD) remains slightly negative, indicating tentative upside momentum.