USD/CHF drops below 0.9500 to lowest in almost two years

Swiss franc rises amid risk aversion, DXY hits monthly lows amid lower yields.
Equity prices finished lower in Europe; Dow Jones drops more than 2%.

Matías Salord FXStreet

The USD/CHF broke below 0.9530 and accelerated to the downside, easily breaking 0.9500. As of writing it trades at 0.9485, the lowest level since March 2018.

The US dollar is falling for the fifth time out of the last six trading days versus the Swiss franc. On Wednesday it rose modestly, giving some signals about a potential consolidation but those did not last and on Thursday resumed the downside.

The US dollar continues under pressure against majors as the rally in US bonds continues. The US 10-year yield dropped to a new all-time low at 0.925%. Market participants see more rate cuts from the Federal Reserve. Despite the monetary stimulus, equity markets are falling on Thursday. In Europe, indexes dropped around 1.7% on average while in Wall Street the Dow Jones tumbles 2.55%. The risk-off mood is back again as the impact of the coronavirus spreads across the globe.

Levels to watch

The bias and the momentum point to further losses in USD/CHF despite oversold readings in main technical indicators and time-frames. On the downside, the next strong support is seen around 0.9455. Now the 0.9500 area is the immediate resistance followed by 0.9530.

USD/CHF

Overview
Today last price	0.9501
Today Daily Change	-0.0066
Today Daily Change %	-0.69
Today daily open	0.9567

Trends
Daily SMA20	0.9747
Daily SMA50	0.9719
Daily SMA100	0.9805
Daily SMA200	0.9842

Levels
Previous Daily High	0.9598
Previous Daily Low	0.9532
Previous Weekly High	0.9816
Previous Weekly Low	0.9609
Previous Monthly High	0.9851
Previous Monthly Low	0.9609
Daily Fibonacci 38.2%	0.9573
Daily Fibonacci 61.8%	0.9557
Daily Pivot Point S1	0.9533
Daily Pivot Point S2	0.95
Daily Pivot Point S3	0.9468
Daily Pivot Point R1	0.9599
Daily Pivot Point R2	0.9631
Daily Pivot Point R3	0.9665

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.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

No reaction from Gold; still targets $4,300

Gold extends Monday’s pessimism and slipped back to nearly three-week lows just above the $4,300 mark per troy ounce on Tuesday. The US Dollar’s rebound couple with rising US Treasury yields weigh on the precious metal despite tensions in the Middle East appear far from abated.

Crypto Today: Bitcoin, Ethereum, XRP struggle to extend gains despite ETF inflows

Bitcoin stalls while holding above $78,000 support as ETF inflows return. Ethereum takes a breather around $2,450 amid sustained institutional support. XRP remains pressured as the 200-day EMA provides immediate support.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.