USD/CHF dives to fresh multi-year lows, eyeing 0.8900 amid notable USD supply


  • USD/CHF witnessed some heavy selling for the third consecutive session on Thursday.
  • Hopes for more US fiscal stimulus weighed on the US and continued exerting pressure.
  • COVID-19 vaccine optimism did little to lend any support or stall the ongoing downfall.

The USD/CHF pair dived to fresh multi-year lows during the early North American session, with bears now eyeing some follow-through weakness below the 0.8900 mark.

The US dollar index prolonged its recent bearish trend and plunged to its lowest level in more than two years on Thursday amid signs of progress towards additional US fiscal stimulus. This, in turn, was seen as one of the key factors that continued exerting pressure on the USD/CHF pair for the third consecutive session on Thursday.

The greenback remained depressed and failed to gain any meaningful traction following the release of Initial Weekly Jobless Claims, which fell to 712K during the week that ended on November 27. The print was well below the 775K anticipated but was largely negated by an upward revision of the previous week's reading to 787K from 778K.

The USD/CHF pair tumbled to levels not seen since January 2015 and the downward trajectory seemed rather unaffected by optimism about the roll-out of COVID-19 vaccine. The UK on Wednesday approved a vaccine jointly developed by Pfizer and BioNTech, though did little to undermine the safe-haven Swiss franc or lend any support to the major.

Thursday's US economic docket also highlights the release of ISM Services PMI. The data, however, is unlikely to provide any respite to the USD bulls, though slightly oversold conditions might help limit any further downside for the USD/CHF pair. That said, some follow-through selling below the 0.8900 mark should pave the way for additional weakness.

Technical levels to watch

USD/CHF

Overview
Today last price 0.8911
Today Daily Change -0.0047
Today Daily Change % -0.52
Today daily open 0.8958
 
Trends
Daily SMA20 0.9091
Daily SMA50 0.9125
Daily SMA100 0.9136
Daily SMA200 0.9369
 
Levels
Previous Daily High 0.9014
Previous Daily Low 0.8944
Previous Weekly High 0.9148
Previous Weekly Low 0.9041
Previous Monthly High 0.9208
Previous Monthly Low 0.8982
Daily Fibonacci 38.2% 0.897
Daily Fibonacci 61.8% 0.8987
Daily Pivot Point S1 0.893
Daily Pivot Point S2 0.8902
Daily Pivot Point S3 0.886
Daily Pivot Point R1 0.9
Daily Pivot Point R2 0.9042
Daily Pivot Point R3 0.907

 

 

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