USD/CHF drops to one-week low, below 0.9200 mark amid sustained USD weakness

USD/CHF edged lower for the fourth successive day amid the prevalent USD selling bias.
Geopolitical tensions benefitted the safe-haven CHF and contributed to the ongoing fall.
Investors look forward to the US ADP report for some short-term trading opportunities.

Haresh Menghani FXStreet

The USD/CHF pair dropped to a one-week low during the early European session, with bears now looking to extend the downward trajectory further below the 0.9200 mark.

Following a brief consolidation earlier this Wednesday, the USD/CHF pair met with a fresh supply and retreated further from over a two-month high, around the 0.9345 area touched earlier this week. The US dollar continues to be weighed down by less hawkish comments by Fed officials. This, in turn, was seen as a key factor that dragged the pair lower for the fourth successive day.

In fact, St. Louis Fed President James Bullard (a noted hawk) and Philadelphia Fed President Patrick Harker pushed back against market bets and downplayed the prospect of a 50bps hike in March. Apart from this, the conflict between Russia and the West over Ukraine benefitted the Swiss franc's safe-haven status and also contributed to the selling bias around the USD/CHF pair.

From a technical perspective, the weekly fall of over 150 pips and acceptance below the 0.9200 mark will set the stage for a further near-term depreciating move for the USD/CHF pair. That said, investors might refrain from placing aggressive bets and prefer to wait for the release of the closely-watched US monthly jobs report – popularly known as NFP on Friday.

In the meantime, market participants on Wednesday will take cues from the US ADP report on private-sector employment, due later during the early North American session. The data might influence the USD price dynamics and provide some impetus to the USD/CHF pair. This, along with the broader market risk sentiment, should produce some short-term trading opportunities.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9198
Today Daily Change	-0.0013
Today Daily Change %	-0.14
Today daily open	0.9211

Trends
Daily SMA20	0.9196
Daily SMA50	0.9205
Daily SMA100	0.9219
Daily SMA200	0.9167

Levels
Previous Daily High	0.9277
Previous Daily Low	0.9204
Previous Weekly High	0.9338
Previous Weekly Low	0.9109
Previous Monthly High	0.9343
Previous Monthly Low	0.9092
Daily Fibonacci 38.2%	0.9232
Daily Fibonacci 61.8%	0.9249
Daily Pivot Point S1	0.9184
Daily Pivot Point S2	0.9158
Daily Pivot Point S3	0.9111
Daily Pivot Point R1	0.9258
Daily Pivot Point R2	0.9304
Daily Pivot Point R3	0.9331

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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