USD/CHF drops toward 0.9000 as USD selloff continues


  • USD/CHF looks to close second straight day in the negative territory.
  • US Dollar Index fell below 90.50 after US data.
  • Wall Street's main indexes post impressive gains on Friday.

The USD/CHF pair extended its daily slide during the American trading hours and touched a daily low of 0.9013. As of writing, the pair was trading at 0.9028, down 0.35% on a daily basis.

The sharp upsurge witnessed in Wall Street's main indexes weighed on the greenback in the second half of the day and forced USD/CHF to continue to push lower. At the moment, the S&P 500 Index is rising 1.1% on a daily basis and the US Dollar Index is losing 0.4% at 90.35.

The data from the US showed on Friday that Retail Sales in April remained unchanged at $619.9 billion. Furthermore, the US Federal Reserve reported that Industrial Production expanded by 0.7%, compared to analysts' estimate of 1%, and the University of Michigan's Consumer Sentiment Index dropped to 82.8 from 88.3. Nevertheless, these uninspiring figures were largely ignored by market participants

Meanwhile, the 10-year US Treasury bond yield is falling 1% on the day, not allowing USD/CHF to stage a rebound ahead of the weekend.

USD/CHF outlook

Credit Suisse analysts think that a sustained move back below 0.9030 would confirm a near-term peak for USD/CHF. "Thereafter, the next levels are seen at 0.9000/8985, which stalled the market on Monday, then 0.8922/10, before 0.8871/62, which is an important price low," analysts added. "Resistance stays at the 200-day average at 0.9083/9115, which should now ideally cap to keep the risks directly lower. Above here, the next levels are seen at 0.9165.”

Additional levels to watch for

USD/CHF

Overview
Today last price 0.9027
Today Daily Change -0.0031
Today Daily Change % -0.34
Today daily open 0.9058
 
Trends
Daily SMA20 0.9112
Daily SMA50 0.923
Daily SMA100 0.9084
Daily SMA200 0.9082
 
Levels
Previous Daily High 0.9094
Previous Daily Low 0.9051
Previous Weekly High 0.9165
Previous Weekly Low 0.9004
Previous Monthly High 0.9473
Previous Monthly Low 0.908
Daily Fibonacci 38.2% 0.9067
Daily Fibonacci 61.8% 0.9077
Daily Pivot Point S1 0.9042
Daily Pivot Point S2 0.9025
Daily Pivot Point S3 0.8999
Daily Pivot Point R1 0.9084
Daily Pivot Point R2 0.911
Daily Pivot Point R3 0.9126

 

 

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