USD/CHF slides further below 0.9000 mark, lowest level since February 24


  • USD/CHF continued losing ground for the fourth consecutive session amid sustained USD selling.
  • Dovish Fed expectations continued acting as a headwind for the greenback and exerted pressure.
  • The risk-on environment did little to weigh on the safe-haven CHF or lend any support to the pair.

The USD/CHF pair weakened further below the key 0.9000 psychological mark and dropped to the lowest level since February 24 during the mid-European session.

The pair prolonged its recent bearish trajectory and witnessed some follow-through selling on the first day of a new trading week. This marked the fourth consecutive day of a negative move and was exclusively sponsored by the prevalent bearish sentiment surrounding the US dollar.

The USD struggled to capitalize/preserve its modest intraday gains, instead met with some fresh supply and dropped to near two-and-half-month lows amid dovish Fed expectations. Friday's dismal US monthly jobs report reaffirmed that the Fed will keep interest rates low for a longer period.

The headline NFP showed that the US economy added only 266K jobs in April, far lower than consensus estimates pointing to a reading of nearly one million. Adding to this, the previous month's reading was revised down and the unemployment rate edged higher to 6.1% from 6.0% in March.

Meanwhile, the underlying bullish tone in the financial markets, which tends to weigh on the safe-haven Swiss franc, also did little to lend any support to the USD/CHF pair. That said, slightly oversold conditions on short-term charts might help limit the downside, at least for now.

There isn't any major market-moving economic data due for release from the US on Monday. Hence, the USD price dynamics will continue to play a key role in influencing the USD/CHF pair. Apart from this, the broader market risk sentiment will also be looked upon for some trading opportunities.

Technical levels to watch

USD/CHF

Overview
Today last price 0.8988
Today Daily Change -0.0016
Today Daily Change % -0.18
Today daily open 0.9004
 
Trends
Daily SMA20 0.9146
Daily SMA50 0.9242
Daily SMA100 0.9077
Daily SMA200 0.9084
 
Levels
Previous Daily High 0.9094
Previous Daily Low 0.9004
Previous Weekly High 0.9165
Previous Weekly Low 0.9004
Previous Monthly High 0.9473
Previous Monthly Low 0.908
Daily Fibonacci 38.2% 0.9038
Daily Fibonacci 61.8% 0.9059
Daily Pivot Point S1 0.8974
Daily Pivot Point S2 0.8944
Daily Pivot Point S3 0.8883
Daily Pivot Point R1 0.9064
Daily Pivot Point R2 0.9124
Daily Pivot Point R3 0.9154

 

 

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