USD/CHF drops to nine-day lows, EUR/CHF tumbles 150 pips

Swiss franc jumps across the board amidst risk aversion and despite Jordan’s words.
Bearish correction in USD/CHF gains speed.
Next support is below 0.9880 at 0.9830 and 0.9800.

Matías Salord FXStreet

The USD/CHF fell sharply during the American session from 0.9970 to 0.9860, reaching the lowest level since May 6. It remains near the lows, under pressure amid risk aversion. The Swiss franc and the Japanese yen are the best performers.

CHF soars, Wall Street plummets

The Swiss franc started to rally after comments from Thomas Jordan, Swiss National Bank Chairman. He reiterated that the SNB is ready to intervene in the currency market and act if inflation strengthens. Despite reaffirming the negative interest rate policy, the Swiss franc started to rise. It then accelerated as stocks in the US turned sharply lower.

The Dow Jones is falling 2.65%, and the Nasdaq tumbles 3.72%. The demand for safety is boosting the yen, the franc, the dollar and bonds. Crude oil reversed and is now down 1.70%. Cryptocurrencies are again under pressure, with BTC/USD below $29,000.

Despite more comments about rate hikes from European Central Bank officials, the EUR/CHF is having the worst day in months. During the last hours it dropped from 1.0490 to 1.0338, the lowest intraday level since May 6.

The short-term technical outlook in USD/CHF changed dramatically during the last two days. After a rally from 0.9330 to 1.0054 (May 16 high), the pair lost momentum and on Tuesday started a correction that is still strong. A consolidation below 0.9880 should keep the negative momentum in place. The next support is seen at 0.9830 and then at 0.9800/10 awaits the 20-day Simple Moving Average.

Technical levels

USD/CHF

Overview
Today last price	0.9966
Today Daily Change	0.0031
Today Daily Change %	0.31
Today daily open	0.9935

Trends
Daily SMA20	0.9791
Daily SMA50	0.9519
Daily SMA100	0.9362
Daily SMA200	0.9288

Levels
Previous Daily High	1.0026
Previous Daily Low	0.9918
Previous Weekly High	1.0049
Previous Weekly Low	0.9872
Previous Monthly High	0.9759
Previous Monthly Low	0.9221
Daily Fibonacci 38.2%	0.9959
Daily Fibonacci 61.8%	0.9985
Daily Pivot Point S1	0.9893
Daily Pivot Point S2	0.9852
Daily Pivot Point S3	0.9786
Daily Pivot Point R1	1.0001
Daily Pivot Point R2	1.0067
Daily Pivot Point R3	1.0109

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.