USD/CHF extends slide to fresh weekly lows at 0.9050
- Swiss franc holds onto gains after the ECB meeting.
- US dollar under pressure: ignores US data and DXY slides to six-day lows.
The USD/CHF pair is falling sharply for the second day in a row. It is holding under 0.9100 and also below the 20-day moving average. After the European Central Bank (ECB) meeting the Swiss franc peaked reaching the highest since September 1 versus the US dollar.
While the greenback remains weak, with the DXY now down for the week under 93.00, the Swiss franc holds onto recent strength after the EBC meeting. The central bank, as expected, kept its monetary policy unchanged.
The ECB showed no concerns about the recent strength seen in the euro and offered upbeat economic forecasts for the region. The EUR/CHF bottomed at 1.0749, the lowest in ten days before the statement, and then bounced toward 1.0800.
The USD/CHF bottomed at 0.9048 and as of writing, it trades at 0.9075, losing 50 pips over the day and the week. The 0.9050 area is the immediate support, and a break lower would expose 0.9015/20 that protects the multi-year low at 0.8997. On the upside, now 0.9080 is the immediate resistance followed by 0.9095 and 0.9115.
Technical levels
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.
