USD/CHF extends slide to 0.9930 on the back of a weak US dollar
|- The decline of the US dollar across the board pushed USD/CHF lower.
- The pair dropped to a key level: 20-day MA and an uptrend line.
The USD/CHF pair is falling on Friday for the third-day in-a-row and as of writing was trading at 0.9950, at the 20-day moving average. A weaker US dollar sent the pair lower, extending the weekly loss and moving further away from the parity level.
Another round of Trump’s comments regarding interest rate and trade weakened the US dollar sharply. The US President warned that higher rates represent a disadvantage for the US economy. “The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates - Really?", he wrote. After those comments, USD/CHF bottomed at 0.9936.
During the last hours, the pair has been consolidating daily losses, moving in a range between 0.9950 and 0.9935, down 70 pips for the week.
Levels to watch
The pair was rejected from above the 1.000 area and corrected lower. The move to the downside accelerated late on Thursday and continues ton Friday. So far, it stopped at the 0.9930/50 area that is key support. A close significantly below would signal more losses ahead, exposing 0.9900 and 0.9850/55 (Jul low).
If the US dollar manages to hold on top of 0.9950, it could rebound back above 1.0000. A clear break of the 1.0040/50 area is needed to clear the way to more gains.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.