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

USD/CHF

Overview
Today last price 0.9784
Today Daily Change -0.0032
Today Daily Change % -0.33
Today daily open 0.9816
 
Trends
Daily SMA20 0.9591
Daily SMA50 0.9678
Daily SMA100 0.976
Daily SMA200 0.9815
 
Levels
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

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.

AUD/USD News

USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.

USD/JPY News

Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI fragility amid OPEC+ delays

The price of oil has been under some pressure in recent trade considering the delays to the OPEC meeting which had been scheduled for Monday but put back until Thursday. Markets are otherwise enjoying some recovery amid signs of a slow down in COVID-19 contagion. 

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures