- Safe-haven demand boosts Swiss franc, yen and gold.
- USD/CHF sharp reversal: down 150 pips in three days, moves away from 2-year highs.
The USD/CHF is falling for the third consecutive day. Today it accelerated the decline and fell to the lowest since April 13. The pair remained near the lows during the US session despite the recovery of the greenback across the board. The DXY rebonded from weekly lows and erased losses.
Swiss franc on demand
The Swissy rose sharply again the US dollar and also versus the euro and the pound amid a session of sharp declines in equity prices on the back of increasing trade tensions between the US and China.
The USD/CHF pair that last week was trading above 1.0200 close to the highest level in more than 2 years, bottomed today at 1.0049. Then rebounded modestly and it has been trading between 1.0070 and 1.0050 over the last few hours.
The Swiss franc, the yen, and gold were the top performers as the DOW JONES heads for the most significant loss since January. Rising tensions between the US and China weigh on equity prices.
USD/CHF Two key support levels
The decline has been capped by the 1.0050 that protects the next support around 1.000. It is a critical level, not only because it is not only a round number, it is near the 20-week moving average. Below that level attention would turn to 0.9910/20, the uptrend line from the 2018 low. A break lower would signal more losses ahead. To the upside, the immediate resistance lies at 1.0070 followed by 1.0100.
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