USD/CHF continues to slide, back under the 20-SMA

Spot accelerates after breaking key support levels.
US dollar weakness driving USD/CHF higher.

Matías Salord FXStreet

The USD/CHF pair is falling for the fourth day in a row as it continues to drop from the highest level in almost two months, above 0.9560. The short-term tone points to more losses.

A weak US Dollar drove the pair lower on Monday. The easing in trade tensions between the US and China lowered the demand for haven currencies, including the Yen and the Swiss franc. But, despite falling against the Euro and the Pound, the Swissy is up versus the greenback.

US Dollar Index Futures dropped to 88.55 hitting the lowest level since February 16 and approached 2018 lows.

USD/CHF Levels to watch

The pair broke last week an uptrend line from February lows. The decline continued today when it dropped to 0.9431, the lowest in 10 days. It is headed toward the first close below the 20-day moving average. Price is moving within a bearish channel. The key dynamic resistance is seen at 0.9475. A break higher would ease the downside pressure.

On the downside, below daily lows, the next support might be seen at 0.9420 followed by 0.9395/0.9400 and 0.9360.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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