USD/CHF breaks below 0.9600 mark, hits fresh monthly low amid risk-off/weaker USD

A combination of factors dragged USD/CHF to a nearly one-month low on Tuesday.
The risk-off mood underpinned the safe-haven CHF and exerted downward pressure.
Broad-based USD weakness further contributed to the selling bias and the downfall.

Haresh Menghani FXStreet

The USD/CHF pair dropped to a nearly one-month low during the early North American session and is now looking to extend the downward trajectory below the 0.9600 round-figure mark.

The pair prolonged its recent sharp retracement slide from a two-year peak, around the 1.0065 region touched earlier this month and witnessed some follow-through selling on Tuesday. This marked the second successive day of a downfall - also the fifth in the previous six - and was sponsored by a combination of factors.

The worsening global economic outlook continued weighing on investors' sentiment, which was evident from a fresh wave of the risk-aversion trade. This, in turn, boosted demand for the traditional safe-haven Swiss franc and dragged the USD/CHF pair lower amid the emergence of heavy selling around the US dollar.

The anti-risk flow was reinforced by a fresh leg down in the US Treasury bond yields. Apart from this, strong pickup in the shared currency - bolstered by hawkish comments by the ECB policymakers - dragged the USD Index to a fresh monthly low. This was seen as another factor that contributed to the USD/CHF pair's decline.

On the economic data front, the US PMIs indicated a deceleration of growth in both - the manufacturing and services sector - and did little to provide any respite to the USD bulls. Tuesday's US economic docket also features New Home Sales and Richmond Manufacturing Index, though the focus remains on Fed Chair Jerome Powell's speech.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9602
Today Daily Change	-0.0057
Today Daily Change %	-0.59
Today daily open	0.9659

Trends
Daily SMA20	0.9833
Daily SMA50	0.9553
Daily SMA100	0.9386
Daily SMA200	0.9299

Levels
Previous Daily High	0.9751
Previous Daily Low	0.9628
Previous Weekly High	1.0064
Previous Weekly Low	0.9694
Previous Monthly High	0.9759
Previous Monthly Low	0.9221
Daily Fibonacci 38.2%	0.9675
Daily Fibonacci 61.8%	0.9704
Daily Pivot Point S1	0.9607
Daily Pivot Point S2	0.9556
Daily Pivot Point S3	0.9484
Daily Pivot Point R1	0.9731
Daily Pivot Point R2	0.9803
Daily Pivot Point R3	0.9855

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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