• 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.

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


Today last price 0.9602
Today Daily Change -0.0057
Today Daily Change % -0.59
Today daily open 0.9659
Daily SMA20 0.9833
Daily SMA50 0.9553
Daily SMA100 0.9386
Daily SMA200 0.9299
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



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD rebounds, steadies above 1.0400

EUR/USD rebounds, steadies above 1.0400

EUR/USD has staged a rebound and reclaimed 1.0400 during the American trading hours on Friday with the US Dollar Index retreating from the multi-week high it set at above 105.60. Nevertheless, the pair remains on track to close the week in negative territory. 


GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD reversed its direction and advanced to the 1.2050 area after having dropped to 1.1976 earlier in the day. The pair is still down more than 1% on the day with safe-haven flows dominating the financial markets following the disappointing PMI data from the US.


Gold rebounds above $1,800 as US yields fall sharply

Gold rebounds above $1,800 as US yields fall sharply

Gold has regained its traction and recovered above $1,800 after having slumped to a multi-month low below $1,790. Following the dismal PMI data from the US, the benchmark 10-year US Treasury bond yield is down more than 6% on the day, fueling XAU/USD's rebound.

Gold News

Why traders are rushing to exit positions on Cardano’s ADA price

Why traders are rushing to exit positions on Cardano’s ADA price

Cardano (ADA) price has had its performance review as the summer kicks off. ADA bulls are returning home with not-that-good a scorecard, and the underperformance could cut short holiday funding for the cryptocurrency.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!