USD/CHF hammered down to 1-1/2 week lows, farther below 0.9900 handle

US-China trade uncertainty continued benefitting the CHF’s safe-haven status.
Sliding US bond yields undermined the USD and added to the intraday selling bias.
Thursday’s scheduled speeches by FOMC member eyed for some trading impetus.

Haresh Menghani FXStreet

The USD/CHF pair came under some fresh selling pressure during the early European session on Thursday and tumbled to 1-1/2 week lows, around the 0.9875 region in the last hour.

Having failed to find acceptance above the very important 200-day SMA at the start of the current trading week, the witnessed a dramatic turnaround and continued losing ground for the fourth consecutive session on Thursday.

Weighed down by reviving safe-haven demand

Doubts over a preliminary US-China trade deal continued weighing on the global risk sentiment and turned out to be one of the key factors boosting demand for traditional safe-haven currencies – including the Swiss Franc.

The global flight to safety was further reinforced by some follow-through pullback in the US Treasury bond yields, which undermined the US Dollar demand and further collaborated to the pair's heavily offered tone.

Thursday's slide to the lowest level since November 5 could also be attributed to some follow-through technical selling below the 0.9900 round-figure mark, which should pave the way for a further intraday decline.

Hence, a slide back towards challenging weekly lows support, around mid-0.9800s, now looks a distinct possibility as market participants look forward to speeches by influential FOMC members for a fresh impetus.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9877
Today Daily Change	-0.0015
Today Daily Change %	-0.15
Today daily open	0.9892

Trends
Daily SMA20	0.9908
Daily SMA50	0.9923
Daily SMA100	0.9879
Daily SMA200	0.9954

Levels
Previous Daily High	0.9938
Previous Daily Low	0.9883
Previous Weekly High	0.998
Previous Weekly Low	0.9852
Previous Monthly High	1.0028
Previous Monthly Low	0.9837
Daily Fibonacci 38.2%	0.9904
Daily Fibonacci 61.8%	0.9917
Daily Pivot Point S1	0.987
Daily Pivot Point S2	0.9849
Daily Pivot Point S3	0.9815
Daily Pivot Point R1	0.9925
Daily Pivot Point R2	0.9959
Daily Pivot Point R3	0.998

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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