USD/CHF ends six-day winning streak with a sharp decline
- USD/CHF retreats sharply from one-month highs, approaches 0.9850
- Swiss franc rises across the board on risk aversion.
The USD/CHF dropped more than fifty pips from the one-month high it reached earlier today at 0.9927. During the American session bottomed at 0.9862 and it was hovering around the lows, holding a robust bearish tone.
The Swiss Franc is among the top performers on Tuesday amid risk aversion. The demand for safe-haven assets also boosted gold, JPY, and bonds. The decline in US yields contributed to weakening further the US dollar. The greenback accelerated the slide following the ISM Manufacturing report. The index came in at 49.1 in August down from 51.2, below expectations. Also, trade war tensions kept the greenback on the defensive today.
Rally ends abruptly
The Swissy is about to post the first daily gain in more than a week. USD/CHF constantly rose since last Monday and peaked today at 0.9928, the highest since August 1. From the top, it started to pull back, and the negative tone intensified under 0.9900.
The pair fell under key moving averages in the four hours chart, showing that further corrective moves are on the cards. The short-term bias now points to the downside. A recovery back above 0.9890, would ease the negative pressure.
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.
