USD/CHF drops below 0.9800 despite broad-based USD weakness

  • Market sentiment stays positive after US announces $2 trillion stimulus package.
  • US Dollar Index extends slide toward 101 on Wednesday.
  • Coming up: Durable Goods Orders from US and SNB's Quarterly Bulletin.

The USD/CHF pair closed the day with modest losses on Tuesday and extended its slide on Wednesday as the CHF struggles to find demand in the risk-on market environment. As of writing, the pair was down 0.3% on a daily basis at 0.9785.

The US Congress finally reached a deal on the coronavirus response bill that will be worth around $2 trillion. Major equity indexes in Asia posted strong gains to reflect the upbeat mood and European stocks stretched higher. Although it erased a portion of its earlier gains, the Euro Stoxx 50 is still up nearly 1% on the day.

USD struggles to find demand

On the other hand, easing worries over USD shortages in USD funding markets and a protracted recession in the US caused the US Dollar Index (DXY) to continue to retreat from the multi-year highs that it set near 103 at the beginning of the week. At the moment, the US Dollar Index is down 0.5% on the day, helping the pair limit its losses for the time being.

The US economic docket on Wednesday will feature Durable Goods Orders for February and Housing Price Index for January. More importantly, investors are likely to keep a close eye on markets' risk perception in the second half of the day. Finally, the Swiss National Bank will release its Quarterly Bulletin.

Technical levels to watch for


Today last price 0.9784
Today Daily Change -0.0032
Today Daily Change % -0.33
Today daily open 0.9816
Daily SMA20 0.9591
Daily SMA50 0.9678
Daily SMA100 0.976
Daily SMA200 0.9815
Previous Daily High 0.9852
Previous Daily Low 0.9719
Previous Weekly High 0.9901
Previous Weekly Low 0.9392
Previous Monthly High 0.9851
Previous Monthly Low 0.9609
Daily Fibonacci 38.2% 0.977
Daily Fibonacci 61.8% 0.9802
Daily Pivot Point S1 0.9739
Daily Pivot Point S2 0.9662
Daily Pivot Point S3 0.9606
Daily Pivot Point R1 0.9873
Daily Pivot Point R2 0.9929
Daily Pivot Point R3 1.0006



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