USD/CHF plummets to fresh low since 2015 as USD downfall remains uninterrupted

USD/CHF continues losing round for the sixth straight day and dives to a fresh multi-year low.
The USD selling remains unabated and turns out to be a key factor behind the ongoing decline.
The oversold RSI on the daily chart might prompt bears to lighten their bets and lend support.

Haresh Menghani FXStreet

The USD/CHF pair prolongs its downtrend for the sixth successive day on Thursday and drops to its lowest level since January 2015, around the 0.8620-0.8615 region during the early part of the European session.

The ongoing downfall is exclusively sponsored by the relentless selling around the US Dollar (USD), which sinks to a 15-month low in the wake of firming expectations that the Federal Reserve (Fed) will hike interest rates only one more time this year. The bets were lifted by softer US consumer inflation figures released on Wednesday, showing that the headline US CPI rose just 0.2% in June and the yearly rate slowed from 4% to 3% - marking the smallest rise since March 2021. Moreover, the monthly increase in core prices was the smallest since August 2021.

This comes on the back of signs that the US labor market is cooling and should allow the Fed to soften its hawkish stance, fueling speculations that the US central bank is close to ending its fastest monetary policy tightening cycle since the 1980s. This, in turn, lead to a further decline in the US Treasury bond yields, which is seen weighing on the Greenback and exerting heavy pressure on the USD/CHF pair. The steep decline, meanwhile, seems rather unaffected by the prevailing risk-on environment, which tends to undermine the safe-haven Swiss Franc (CHF).

With the latest leg down, spot prices have fallen nearly 400 pips from the 0.9000 psychological mark, or the monthly peak touched last week. This, along with the extremely oversold Relative Strength Index (RSI) on the daily chart, might prompt bearish traders to take some profits off the table and help limit any further losses for the USD/CHF pair, at least for the time being. Market participants now look to the US economic docket, featuring the Producer Price Index (PPI) and the usual Weekly Initial Jobless Claims for some meaningful impetus.

Technical levels to watch

USD/CHF

Overview
Today last price	0.8617
Today Daily Change	-0.0057
Today Daily Change %	-0.66
Today daily open	0.8674

Trends
Daily SMA20	0.8927
Daily SMA50	0.8976
Daily SMA100	0.9056
Daily SMA200	0.9266

Levels
Previous Daily High	0.88
Previous Daily Low	0.8659
Previous Weekly High	0.9005
Previous Weekly Low	0.8876
Previous Monthly High	0.912
Previous Monthly Low	0.8902
Daily Fibonacci 38.2%	0.8713
Daily Fibonacci 61.8%	0.8746
Daily Pivot Point S1	0.8622
Daily Pivot Point S2	0.857
Daily Pivot Point S3	0.8481
Daily Pivot Point R1	0.8764
Daily Pivot Point R2	0.8852
Daily Pivot Point R3	0.8905

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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