USD/CHF hits fresh three-week lows under 0.9850
- Risk aversion favors the Swiss Franc against the US Dollar on Friday.
- Euro and Swissy among top performers of the week, both consolidating weekly gains versus Greenback.
The USD/CHF pair dropped further during the American session and bottomed at 0.9848, hitting the lowest level since September 24. As of writing, trades at 0.9855, down 20 pips for the day and more than a hundred from the level it had a week ago. It is the worst week for the Greenback since early August.
The US Dollar was affected by rising expectations of rate cuts from the Federal Reserve and Brexit developments. On Saturday is the meaningful vote in the UK Parliament. On Thursday will be the European Central Bank meeting, the last one with Mario Draghi as president.
ECB meetings usually affect the Euro, although many times the Swiss Franc is more impacted in terms of price action. Regarding the next meeting, ING analysts consider it will be about two main things: “Mario Draghi’s farewell after eight years at the helm of the ECB and an escalation of the controversy and quarrels within the Governing Council. One could clearly overshadow the other. In terms of policies, don’t expect any changes or any hints at further steps.”
USD/CHF hits the 200-week moving average
The USD/CHF found support so far around the 0.9850, where the 200-week moving average stands. A weekly close under that level would point to further losses and to a test of 0.9800.
If the Dollar manages to hold on top, some consolidation should be expected for the next days. The immediate resistance might lie at 0.9895/0.9900 and then 0.9955.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
