USD/CHF plummets to lowest level since mid-Nov.

Haresh Menghani FXStreet

The greenback remained heavily offered across the board, with the USD/CHF pair sliding farther below the 0.9900 handle to hit the lowest level since Nov. 11.

Currently trading around 0.9840-35 band, the pair extended its break-down momentum below the very important 200-day SMA in reaction to the US president Donald Trump's failure to repeal Obamacare - one of his major campaign promises. The setback sparked concerns over his ability to push through the promised pro-growth economic policies and prolonged the post-FOMC US Dollar weakening trend.

Meanwhile, a fresh wave of global risk-aversion trade was further seen benefitting the Swiss Franc's safe-haven appeal and collaborated to the pair's sharp downslide to over 4-month lows.

Later during the NY session, speech by the Chicago Fed President Charles Evans would be looked upon for some immediate respite for the US Dollar bulls in absence of any major market moving economic releases.

Technical levels to watch

A follow through weakness below 0.9830-20 region (Feb. 10-11 lows) is likely to drag the pair below 0.9800 handle towards testing its next support near 0.9775-70 support area.

On the upside, any recovery above 0.9875-80 immediate resistance, leading to a subsequent momentum above the 0.9900 handle, might now confront strong resistance near 0.9920-25 region (200-day SMA).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.9875

33% Bullish
67% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0152

64% Bullish
27% Bearish
9% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.0212

55% Bullish
9% Bearish
36% Sideways

Bias Bullish

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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