USD/CHF slips below mid-0.9700s, moves within striking distance of yearly low
- The pair remains heavily offered for the fourth straight session on Monday.
- The USD falls to three-month lows and keeps exerting downward pressure.
- Reviving safe-haven demand underpins CHF and adds to the selling bias.
The USD/CHF pair remained depressed through the early North-American session and is currently placed at fresh multi-month lows, below mid-0.9700s.
The pair added to last week's steep decline of over 250-pips and remained under some selling pressure for the fourth consecutive session on Monday, extending its post-FOMC slump from levels beyond the parity mark.
The US Dollar struggled near three-month lows, around mid-95.00 in the wake of a more dovish shift by the FOMC - signalling that it was prepared to cut interest rates later this year to support growth and combat subdued inflation.
This coupled with the prevailing cautions mood around European equity markets was seen underpinning the Swiss Franc's relative safe-haven status and further collaborated to the pair's offered tone on the first day of a new week.
Bearish traders seemed unaffected by the latest US-China trade optimism, rather took cues from escalating geopolitical tensions in the Middle East after Iran shot down an American surveillance drone last week.
Even extremely oversold conditions on hourly/daily charts failed to ease the bearish pressure or stall the ongoing slide to the lowest level since early-January, or within the striking distance of yearly lows.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
