USD/CHF slumps to 0.9650 area on fresh USD selloff

  • US Dollar Index drops to weekly lows below 97.30.
  • Major European equity indexes trade mixed on Wednesday.
  • SNB says FX intervention is part of monetary policy.

The USD/CHF pair erased nearly 40 pips on Tuesday after the United States decided to add Switzerland into its list of currency manipulators. Although the Swiss National Bank capped the CHF's gains by explaining that currency interventions were purely motivated by the monetary policy to disregard the labelling of "manipulator," the broad-based USD weakness caused the pair to extend its losses.

As of writing, the pair was trading at the lowest level of 2020 at 0.9655, erasing 0.18% on a daily basis. With a break below 0.9645, the pair will touch its lowest level since September of 2018.

USD Dollar Index turns south on Wednesday

Before the US and China sign the phase-one trade deal later in the day, the US Dollar Index lost its traction and broke below the tight range, in which it has been fluctuating start of the week. As of writing, the index was at its lowest level since January 8th at 97.25, down 0.14% on the day.

The strong performance of European currencies such as the EUR seems to be making it difficult for the greenback to find demand. The Producer Price Index (PPI) and the NY Fed's Empire State Manufacturing Survey will be featured in the US economic docket later in the day.

Technical levels to watch for


Today last price 0.9658
Today Daily Change -0.0015
Today Daily Change % -0.16
Today daily open 0.9673
Daily SMA20 0.9742
Daily SMA50 0.9841
Daily SMA100 0.9878
Daily SMA200 0.9914
Previous Daily High 0.9715
Previous Daily Low 0.9665
Previous Weekly High 0.9763
Previous Weekly Low 0.9665
Previous Monthly High 1.0009
Previous Monthly Low 0.9646
Daily Fibonacci 38.2% 0.9684
Daily Fibonacci 61.8% 0.9696
Daily Pivot Point S1 0.9654
Daily Pivot Point S2 0.9634
Daily Pivot Point S3 0.9604
Daily Pivot Point R1 0.9704
Daily Pivot Point R2 0.9734
Daily Pivot Point R3 0.9754



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.


GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.


XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News