USD/CHF slides to fresh 1-month low, around mid-0.9800s

USD/CHF added to the overnight losses and continued losing ground on Tuesday.
Persistent trade uncertainty was seen underpinning the CHF’s safe-haven demand.
The set-up favours bearish traders, albeit warrants some caution ahead of FOMC.

Haresh Menghani FXStreet

The USD/CHF pair remained heavily offered for the second consecutive session on Tuesday dropped to fresh one-month lows, around mid-0.9800s in the last hour.

Having failed to capitalize on the post-NFP positive move, the pair met with some fresh supply on the first day of a new trading week and continued losing ground through the mid-European session on Tuesday.

Reviving safe-haven demand benefitted the CHF

Uncertainties about a potential phase one trade deal between the world's two largest economies led to a fresh wave of the global risk-aversion trade and benefitted the Swiss franc's perceived safe-haven status.

The global flight to safety was evident from weaker sentiment around equity markets and reinforced by a fall in the US Treasury bond yields, which undermined the US dollar demand and further collaborated to the pair's slide.

This coupled with possibilities of some short-term trading stops being triggered below the recent daily close support near the 0.9870 horizontal zone further aggravated the bearish pressure surrounding the major.

Hence, some follow-through weakness, back towards challenging the 0.9800 round-figure mark, now looks a distinct possibility amid absent relevant market-moving economic releases from the US.

Having said that, some repositioning trade ahead of this week's key event risk – the latest FOMC monetary policy update on Wednesday, might lend some support and help limit deeper losses, at least for the time being.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9853
Today Daily Change	-0.0025
Today Daily Change %	-0.25
Today daily open	0.9878

Trends
Daily SMA20	0.9923
Daily SMA50	0.9926
Daily SMA100	0.989
Daily SMA200	0.9945

Levels
Previous Daily High	0.9912
Previous Daily Low	0.9875
Previous Weekly High	1.0009
Previous Weekly Low	0.9855
Previous Monthly High	1.0024
Previous Monthly Low	0.985
Daily Fibonacci 38.2%	0.9889
Daily Fibonacci 61.8%	0.9898
Daily Pivot Point S1	0.9865
Daily Pivot Point S2	0.9852
Daily Pivot Point S3	0.9828
Daily Pivot Point R1	0.9901
Daily Pivot Point R2	0.9925
Daily Pivot Point R3	0.9938

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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