USD/CHF ends 4-day bullish streak, another test of 1.0050 on the cards
- The Swiss franc is among top European performer today, on a quiet session.
- USD/CHF heads for first lost after rising during four days in-a-row.
The USD/CHF pair is trading at 1.0085, near the daily low it reached after the beginning of the American session at 1.0079. The pair holds a bearish intraday tone amid a lower US Dollar across the board. Today the Swiss franc is up also against the Euro and the Pound. EUR/CHF reached the lowest level since April 11 at 1.1255
The greenback is falling amid lower US yields, a decline in equity prices in Wall Street and also following the release of the Chicago Fed Activity Index that showed a decline to -0.45 from 0.05 (below the -0.33 expected). The US Dollar Index (DXY) is down 0.10%, back below 98.00. Wall Street is falling on the back of Huawei fallout concerns and the impact on trade negotiations.
USD/CHF Retreating from the 20-day moving average
A week ago, USD/CHF bottomed at 1.0049 and then started to correct higher, rising during four consecutive days. On Friday it lost strength after reaching a top at 1.0120. The mentioned level was tested today but it held below. It has become the key barrier to the upside and is also the 20-day moving average. A daily close above 1.0120 would clear the way for an extension to the upside. While it remains below, the bias would favor the downside.
Below the daily low, the next support might be seen at 1.0070, followed by the last week low at 1.0050 and then 1.0025/30.
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.
