- USD/CHF met with some fresh supply ahead of the 0.9100 mark amid renewed USD selling.
- A positive mood around the equity markets did little to stall the pair’s sharp intraday slide.
- A subsequent fall to weekly lows, en-route the key 0.9000 mark, looks a distinct possibility.
The USD/CHF pair extended its sharp intraday pullback and slipped below mid-0.9000s in the last hour, back closer to multi-week lows set earlier this week.
The pair failed to capitalize on its early uptick, instead witnessed a dramatic intraday turnaround from the vicinity of the 0.9100 mark amid the emergence of some fresh selling around the US dollar. Despite the slow progress in the US stimulus talks, the optimism over the first approved treatment for COVID-19 dented the greenback's status as the global reserve currency.
It is worth reporting that Gilead Sciences received US FDA approval on Thursday for its antiviral therapy to treat the highly contagious coronavirus disease. Adding to this, growing expectations of a strong Democratic victory in the US elections further undermined the buck, which, so far, has failed to gain any respite from an uptick in the US Treasury bond yields.
Meanwhile, the combination of positive factors boosted investors' confidence and the same was evident from a positive tone around the equity markets. The risk-on mood, which tends to drive flows away from the safe-haven Swiss franc, however, did little to lend any support or ease the intraday bearish pressure surrounding the USD/CHF pair.
The pair's inability to attract any buying interest supports prospects for an extension of the ongoing downfall. Hence, some follow-through weakness back towards weekly lows, around the 0.9025 region, en-route the key 0.9000 psychological mark, looks a distinct possibility.
Technical levels to watch
|Today last price||0.9042|
|Today Daily Change||-0.0029|
|Today Daily Change %||-0.32|
|Today daily open||0.9071|
|Previous Daily High||0.908|
|Previous Daily Low||0.9046|
|Previous Weekly High||0.9163|
|Previous Weekly Low||0.9088|
|Previous Monthly High||0.9296|
|Previous Monthly Low||0.8999|
|Daily Fibonacci 38.2%||0.9067|
|Daily Fibonacci 61.8%||0.9059|
|Daily Pivot Point S1||0.9051|
|Daily Pivot Point S2||0.9031|
|Daily Pivot Point S3||0.9017|
|Daily Pivot Point R1||0.9086|
|Daily Pivot Point R2||0.91|
|Daily Pivot Point R3||0.912|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.