USD/CHF drops further under 0.9000 as the US dollar tumbles
- DXY reverses drops under 90.00, as US yields turn to the downside.
- Swiss franc heads for the highest close since in two weeks versus US dollar.
The USD/CHF is falling for the second day in a row. The pair broke to the downside during the American session and fell to 0.8966, reaching the lowest level since Wednesday. It remains near the lows holding onto recent losses.
The US dollar weakened during the last hours amid a decline in US bond yield and despite lower US equity prices. The 10-year yield fell to 1.56%, while the Dow Jones drops 0.41%. Market participants continue to digest NFP numbers released on Friday as no data is due on Monday. The key report will be on Thursday with inflation numbers, and also that day, the European Central Bank (ECB) will have its policy meeting.
Another failure at 0.9050
The USD/CHF pulled back under the 20-day moving average, and is it again near the 0.8960 support area. A close below would suggest more weakness ahead for the greenback. The next support stands at 0.8930.
The reversal in USD/CHF took place after it was again unable to break the 0.9050 resistance. The mentioned area remains critical, and a break higher would point to more gains. While below that area, the consolidation phase with a bearish bias will remain in place.
Technical levels
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.
