USD/CHF headed for first weekly close below 0.95 since Aug. 2015
The USD/CHF pair recently refreshed its lowest level in more than 14 months at 0.9455 as the greenback selling interest remains unabated in the last session of the week. At the moment, the pair is trading at 0.9458, losing 0.6% on the day.
The never ending political drama in the United States doesn't allow the greenback to heave a sigh of relief on Friday with the US Dollar Index struggling to make even a modest recovery following two days of heavy losses. As of writing, the index is at 93.78, the 13-month low, losing 0.33% on the day.
After the resignation of U.S. President Donald Trump's outside legal team spokesman, Mark Corallo; Sean Spicer, the White House press secretary, also announced that he was quitting his position on Friday after Donald Trump appointed Anthony Scaramucci as communications director, which Spicer thought was a major mistake.
In addition to the USD weakness, the CHF is finding some extra demand on Friday as major equity indexes in the U.S. stay in the negative territory after starting the day lower, putting more pressure on the pair.
Technical outlook
If the pair fails to recover above 0.95 by the time the markets wrap up the week, it's going to record its lowest weekly close in nearly 23 months. In the meantime, with today's retreat, the RSI on the daily graph fell into the oversold area, suggesting that a technical recovery could be witnessed before the pair continues its downfall. The initial support could be seen at 0.9440 (May 3, 2016, low) followed by 0.9400 (psychological level) and 0.9315 (Aug. 25, 2015, low). On the upside, 0.9520 (daily high) is the first hurdle ahead of 0.9600 (20-DMA) and 0.9700 (psychological level/Jul. 14 high).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
