USD/CHF drops to over 1-month lows, around mid-0.9800s


  • USD/CHF extended this week’s sharp pullback from the parity mark.
  • Trade uncertainty continued benefitting the CHF’s safe-haven status.
  • Investors now look forward to the US macro data for a fresh impetus.

The USD/CHF pair witnessed some follow-through selling for the third consecutive session on Wednesday and dropped to over one-month lows, around mid-0.9800s in the last hour.

The pair extended this week's rejection slide from the key parity mark and continued losing ground through the early European session on Wednesday. Persistent trade uncertainty continued underpinning the Swiss franc's perceived safe-haven status and kept exerting downward pressure on the major.

Weighed down by escalating US-China tensions

In the latest trade development, the US President Trump on Tuesday indicated that a deal with China may not come until after the 2020 US presidential election and triggered a fresh wave of the global risk-aversion trade. The already weaker sentiment deteriorated further amid escalating tensions over the passage of Hong Kong and Xinjiang bills.

It is worth recalling that the US Congress overwhelmingly approved a bill condemning China’s mass detention of ethnic Muslims in the western region of Xinjiang. This comes after Trump last week signed a bill supporting Hong Kong’s pro-democracy protesters and was further seen as yet another setback to the trade negotiations.

Meanwhile, a subdued US dollar demand, though the downside remained limited amid stability in the US Treasury bond yields, did little to stall the pair's ongoing downfall to the lowest level since early-November. It will now be interesting to see if the pair is able to find any support at lower levels as the focus now shifts to the US macro data.

Wednesday's US economic docket features the release of ADP report on private-sector employment and the ISM Non-Manufacturing PMI, which might influence the USD price dynamics and contribute towards producing some short-term trading opportunities later during the early North-American session.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9856
Today Daily Change -0.0017
Today Daily Change % -0.17
Today daily open 0.9873
 
Trends
Daily SMA20 0.9935
Daily SMA50 0.993
Daily SMA100 0.9888
Daily SMA200 0.9947
 
Levels
Previous Daily High 0.9927
Previous Daily Low 0.9857
Previous Weekly High 1.0024
Previous Weekly Low 0.9954
Previous Monthly High 1.0024
Previous Monthly Low 0.985
Daily Fibonacci 38.2% 0.9884
Daily Fibonacci 61.8% 0.99
Daily Pivot Point S1 0.9844
Daily Pivot Point S2 0.9816
Daily Pivot Point S3 0.9774
Daily Pivot Point R1 0.9914
Daily Pivot Point R2 0.9956
Daily Pivot Point R3 0.9984

 

 

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


Latest Forex News

Editors’ Picks

AUD/USD continues to trade uneventfully just below 0.7000

Upbeat Australian data and Wall Street’s recovery fell short of boosting the Aussie against its American rival. Westpac Consumer Confidence coming up next.

AUD/USD News

Gold advances to fresh daily highs near $1,810

The XAU/USD pair closed the first day of the week with small gains above $1,800. After spending the European session moving sideways in a tight channel, the pair turned north on broad USD weakness during the American session. 

Gold News

BOJ Preview: No changes in policy, but forecast downgrades expected

After a chaotic end to Q1, the Bank of Japan is back to usual business. Policymakers will have a meeting to decide on monetary policy early Wednesday.

Read more

Bitcoin low volatility indicates a significant move to $8,000 or $10,000 is nearby

Bitcoin price is currently at $9,229 after a brief dip to $9,104. It is currently below the daily 12-EMA and the 26-EMA which have been unable to cross positively due to the lack of bullish continuation. 

Read more

WTI Oil Outlook: Concerns of slowdown in global demand recovery pressure oil price

WTI oil remains at the back foot on Tuesday and establishes below $40 level, as sentiment weakened on news of new restrictions in California due to increased number of infections.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures