USD/CHF plummets to lows, around mid-0.9900s in pre-NFP trade


  • The ongoing slide in the US bond yields kept the USD bulls on the defensive.
  • Reviving safe-haven demand benefitted the CHF and added to the selling bias.
  • Friday’s key focus will remain on the US monthly jobs report for September.

The USD/CHF pair remained under some heavy selling pressure through the European session on Friday and retreated farther from 2-1/2 month tops set in the previous session.
 
The pair on Thursday once again met with some fresh supply near the 1.0025-30 region and finally settled below the parity mark on the back of some aggressive US Dollar selling following the disappointing release of US ISM non-manufacturing PMI for September.
 
The Greenback was further pressurized by a sharp intraday slump in the US Treasury bond yields, amid growing Fed rate cut expectations, though a late rebound in the US equities weighed on the Swiss Franc's safe-haven demand and extended some support to the major.

Weaker equities/USD prompts some long-unwinding trade

The pair continued with its struggle to find acceptance above the 1.00 handle and witnessed some long-unwinding trade on Friday in the wake of some follow-through slide in the US bond yields, which continued exerting some downward pressure on the buck.
 
This coupled with a weaker trading sentiment around equity markets and some repositioning trade - ahead of Friday's important release of the US monthly jobs report - further collaborated to the pair's slide back towards the very important 200-day SMA support near mid-0.9900s.
 
It, however, remains to be seen if the current pullback marks the end of the recent positive momentum or attracts some fresh buying at lower levels as market participants look forward to the headline US NFP print and the closely watched wage growth data for a fresh directional impetus.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9952
Today Daily Change -0.0036
Today Daily Change % -0.36
Today daily open 0.9988
 
Trends
Daily SMA20 0.9925
Daily SMA50 0.986
Daily SMA100 0.9889
Daily SMA200 0.995
 
Levels
Previous Daily High 1.0028
Previous Daily Low 0.9952
Previous Weekly High 0.995
Previous Weekly Low 0.9843
Previous Monthly High 0.9988
Previous Monthly Low 0.9797
Daily Fibonacci 38.2% 0.9999
Daily Fibonacci 61.8% 0.9981
Daily Pivot Point S1 0.9951
Daily Pivot Point S2 0.9914
Daily Pivot Point S3 0.9875
Daily Pivot Point R1 1.0027
Daily Pivot Point R2 1.0065
Daily Pivot Point R3 1.0102

 

 

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