USD/CHF flirts with 200-DMA around 0.9075-70 area, six-week lows

  • The post-FOMC broad-based USD weakness dragged USD/CHF lower for the fourth straight day.
  • Dismal US macro data failed to provide any respite to the USD or lend any support to the major.
  • Bulls shrugged off a generally positive risk tone, which tends to undermine the safe-haven CHF.

The USD/CHF pair dropped to six-week lows, around the 0.9075-70 region in reaction to dismal US macro releases, with bears now awaiting a sustained break below the very important 200-day SMA.

The pair extended this week's rejection slide from the 0.9200 round figure and remained under some selling pressure for the fourth consecutive session on Thursday. The ongoing downward trajectory was exclusively sponsored by the heavily offered tone surrounding the US dollar, which, so far, has failed to benefit from a goodish rebound in the US Treasury bond yields.

The Fed Chair Jerome Powell took a dovish turn at the post-meeting press conference and emphasised that they were some ways away from substantial progress on jobs. Powell was also cautious about tapering and said that policymakers discussed some details but it will take a few more meetings to get into it, which continued acting as a headwind for the greenback.

The USD selling bias picked up pace during the early North American session after the disappointing release of the Advance second-quarter US GDP report. The first estimate showed that the world's largest economy expanded by 6.5% annualized pace during the April-June period, slightly higher than 6.4% in the previous quarter, though missed expectations by a big margin.

Adding to this, the US Initial Weekly Jobless Claims fell less than anticipated to 400K during the week ended July 23 as against the previous week's upwardly revised reading of 424K. The data reaffirmed speculations that the Fed will retain its ultra-lose monetary policy stance for a longer period and did little to provide any respite to the USD bulls.

Even a generally positive tone around the equity markets, which tends to undermine the safe-haven Swiss franc, also failed to lend any support to the USD/CHF pair. Bearish traders now await some follow-through selling below the 200-day SMA support before positioning for any further near-term depreciating move, possibly back towards the 0.9000 round figure.

Technical levels to watch


Today last price 0.9076
Today Daily Change -0.0024
Today Daily Change % -0.26
Today daily open 0.91
Daily SMA20 0.9184
Daily SMA50 0.9106
Daily SMA100 0.9156
Daily SMA200 0.9074
Previous Daily High 0.9168
Previous Daily Low 0.91
Previous Weekly High 0.9233
Previous Weekly Low 0.9155
Previous Monthly High 0.9262
Previous Monthly Low 0.8926
Daily Fibonacci 38.2% 0.9126
Daily Fibonacci 61.8% 0.9142
Daily Pivot Point S1 0.9078
Daily Pivot Point S2 0.9055
Daily Pivot Point S3 0.901
Daily Pivot Point R1 0.9145
Daily Pivot Point R2 0.919
Daily Pivot Point R3 0.9213



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more