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

USD/CHF

Overview
Today last price 0.9658
Today Daily Change -0.0015
Today Daily Change % -0.16
Today daily open 0.9673
 
Trends
Daily SMA20 0.9742
Daily SMA50 0.9841
Daily SMA100 0.9878
Daily SMA200 0.9914
 
Levels
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

 

 

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