USD/CHF slides below mid-0.9000s, back closer to multi-week lows set on Wednesday


  • 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

USD/CHF

Overview
Today last price 0.9042
Today Daily Change -0.0029
Today Daily Change % -0.32
Today daily open 0.9071
 
Trends
Daily SMA20 0.9153
Daily SMA50 0.9129
Daily SMA100 0.9243
Daily SMA200 0.9462
 
Levels
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

 

 

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