USD/CHF drops to four-week lows, approaches critical support


  • The Swiss franc remains supported by the risk aversion environment. 
  • US dollar resumes slide against European currencies as US yields tumble. 

The USD/CHF has continuously been falling since Monday. During Tuesday’s American session, the negative momentum continued to prevail. Recently it bottomed at 0.9856, the lowest level since November 4. 

More USD weakness 

Over the last hours, the US dollar accelerated the decline versus European currencies amid lower US yields. The 10-year yield fell from 1.84% to 1.70%, reaching the lowest since early November. At the same time, the US Dollar Index (DXY) also hit monthly lows, approaching 97.50. The index is falling for the third day in a row extending the reversal from 98.50. 

A stronger Swiss franc also drove the decline in USD/CHF. The risk aversion tone across markets, triggered by concerns about global trade boosted CHF. The EUR/CHF pair trades at the highest in two months. 

Eyes on October lows

On Friday, USD/CHF tested near parity the highest level since June, but it failed to break above and now it is approaching the 0.9840/50 area (October and November lows). A break lower would clear the way to more losses, probably targeting 0.9805. 

On the upside, the greenback needs to recover levels above 0.9930 (20-day moving average) to remove the short-term negative bias. 


 

EUR/USD

Overview
Today last price 1.108
Today Daily Change -0.0005
Today Daily Change % -0.05
Today daily open 1.1085
 
Trends
Daily SMA20 1.1039
Daily SMA50 1.1043
Daily SMA100 1.1074
Daily SMA200 1.1164
 
Levels
Previous Daily High 1.1091
Previous Daily Low 1.1002
Previous Weekly High 1.1034
Previous Weekly Low 1.0981
Previous Monthly High 1.1176
Previous Monthly Low 1.0981
Daily Fibonacci 38.2% 1.1057
Daily Fibonacci 61.8% 1.1036
Daily Pivot Point S1 1.1028
Daily Pivot Point S2 1.0971
Daily Pivot Point S3 1.0939
Daily Pivot Point R1 1.1117
Daily Pivot Point R2 1.1148
Daily Pivot Point R3 1.1205

 

 

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