USD/CHF hangs near weekly lows, around 0.9730 region

  • USD/CHF witnessed some follow-through selling on Thursday amid notable USD supply.
  • The Fed’s unlimited QE, sliding US bond yields kept exerting pressure on the greenback.
  • The cautions mood benefitted the CHF’s safe-haven status and added to the selling bias.

The USD/CHF pair edged lower through the early European session and is currently placed near the lower end of its weekly trading range, around the 0.9730-25 region.

The pair extended this week's retracement slide from the 0.9900 round-figure mark, or YTD tops set on Monday and remained depressed for the third consecutive session amid persistent selling bias around the US dollar.

The Fed's unprecedented QE program to buy unlimited amounts of Treasury bonds and mortgage-backed securities helped ease concerns about tightening liquidity and prompted investors to continue dumping the greenback.

Even the latest optimism over the passage of a massive $2 trillion US economic relief package failed to provide any respite to the USD, while a fresh leg down in the US Treasury bond yields exerted some additional pressure.

On the other hand, the prevailing cautious mood – amid mounting fears over the economic fallout from the coronavirus pandemic – benefitted the Swiss franc's safe-haven status and further contributed to the pair's weaker tone.

It will now be interesting to see if the pair is able to find any support at lower levels or extends its downward trajectory as market participants now look forward to the US economic docket for a fresh impetus.

Thursday's economic docket features the release of the highly anticipated US initial weekly jobless claims. This coupled with the final US Q4 GDP growth figures will influence the USD price dynamics and produce some trading opportunities.

Technical levels to watch


Today last price 0.9737
Today Daily Change -0.0034
Today Daily Change % -0.35
Today daily open 0.9771
Daily SMA20 0.9592
Daily SMA50 0.9681
Daily SMA100 0.9758
Daily SMA200 0.9814
Previous Daily High 0.9835
Previous Daily Low 0.9755
Previous Weekly High 0.9901
Previous Weekly Low 0.9392
Previous Monthly High 0.9851
Previous Monthly Low 0.9609
Daily Fibonacci 38.2% 0.9785
Daily Fibonacci 61.8% 0.9804
Daily Pivot Point S1 0.9739
Daily Pivot Point S2 0.9707
Daily Pivot Point S3 0.9659
Daily Pivot Point R1 0.9819
Daily Pivot Point R2 0.9867
Daily Pivot Point R3 0.9898



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