USD/CHF extends slide below 0.9400 as Swiss franc strengthens
|- USD/CHF turns negative for the week after Friday’s slide.
- Swiss franc among the top performers, EUR/CHF retreats from monthly highs.
The USD/CHF extended the decline after the beginning of the American session and printed a fresh daily low at 0.9390. The combination of a weaker greenback and a rally of the Swiss franc across the board pushed the pair to the downside.
So far on Friday, the pair dropped almost 60 pips, erasing Wednesday’s gains when it rose sharply. The pair is now in negative territory for the week and far from the two-week highs it reached at 0.9468 on Thursday.
The DXY is falling, trading slightly above 96.00 after being unable to hold in positive territory. US economic data released on Friday showed a rebound in housing data but an unexpected decline in July Consumer Confidence (University of Michigan).
The Swiss franc is rising versus its main rivals as European leaders meet in Brussels to discuss the long term budget and the recovery fund. EUR/CHF is falling for the second day in a row and bottomed at 1.0730 while CHF/JPY soars hitting level above 114.00.
Technical outlook
The negative momentum continues to be strong despite the considerable decline of the last hours in USD/CHF. The pair is approaching the 0.9385 support level. If it breaks below the mentioned level, last week lows at 0.9360 will be exposed.
On the upside, immediate resistance is seen at 0.9430. If the greenback rises above it should strengthen signaling another test of the 0.9460/65 resistance area.
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