USD/CHF falls to 0.9100 neighbourhood, fresh multi-year lows


  • USD/CHF slides to fresh multi-year lows amid some renewed USD selling bias.
  • The safe-haven CHF further benefitted from a selloff in the US equity markets.
  • Extremely oversold conditions on the daily chart warrant some caution for bears.

The USD/CHF pair witnessed some selling during the early North American session and dropped to the 0.9110 region in the last hour – the lowest level since May 2015.

The pair failed to capitalize on its attempted intraday recovery move, instead met with some fresh supply near mid-0.9100s amid the emergence of some fresh selling around US dollar. The US Treasury bond yields recorded a steep decline on Thursday and capped the early modest USD rebound.

In fact, the yield on the benchmark 10-year US government bond yield nosedived to the lowest level since early March following the release of the advance US GDP report. The preliminary number showed that the US economy shrank at a record 32.9% annualized pace during the second quarter.

The USD was further pressured by the impasse over the next round of the US fiscal stimulus measures. With only two days left before the expiry of the existing enhanced unemployment provisions, Congressional Republicans and Democrats have been struggling to reach a deal.

Apart from this, a selloff in the US equity markets benefitted the Swiss franc's safe-haven status and further contributed to the USD/CHF pair's intraday fall of around 40 pips. US stocks added to the daily losses after the US President Donald Trump proposed to delay the 2020 election due to coronavirus.

The pair has now drifted into the negative territory for the eighth consecutive session, with bears now eyeing a sustained break below the 0.9100 round-figure mark. However, extremely oversold conditions on short-term charts warrant some caution before placing fresh bearish bets.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9114
Today Daily Change -0.0012
Today Daily Change % -0.13
Today daily open 0.9126
 
Trends
Daily SMA20 0.9351
Daily SMA50 0.9472
Daily SMA100 0.9581
Daily SMA200 0.9681
 
Levels
Previous Daily High 0.9188
Previous Daily Low 0.9117
Previous Weekly High 0.941
Previous Weekly Low 0.9204
Previous Monthly High 0.9651
Previous Monthly Low 0.9376
Daily Fibonacci 38.2% 0.9144
Daily Fibonacci 61.8% 0.9161
Daily Pivot Point S1 0.9099
Daily Pivot Point S2 0.9073
Daily Pivot Point S3 0.9029
Daily Pivot Point R1 0.917
Daily Pivot Point R2 0.9214
Daily Pivot Point R3 0.9241

 

 

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