USD/CHF slumps to fresh 5-day lows near 0.98 amid broad-based USD weakness

US Dollar Index drops below 96 on Monday.
European stocks record modest losses.
Coming up: ISM non-manufacturing PMI.

Eren Sengezer FXStreet

With the greenback starting the week on the back foot, the USD/CHF pair suffered losses and slumped to its lowest level since January 2 at 0.9810. As of writing, the pair was trading at 0.9815, losing 0.5% on a daily basis.

The US Dollar Index, which fell sharply following FOMC Chairman Powell's comments on Friday, failed to stage recovery on Monday as investors remain on the sidelines ahead of the critical PMI data. Commenting on the disappointing ISM Manufacturing PMI data, Powell said it was worth "keeping an eye" on the drop in ISM figures. Ahead of the 15GMT data release, the US Dollar Index is down 0.33% on the day at 95.88.

Meanwhile, major equity indexes in Europe suffer modest losses on Monday to allow the CHF to continue to gather strength as a safe-haven. At the moment, Germany's DAX is down 0.43% on the day while the UK's FTSE is losing 0.4%.

On Tuesday, the SECO will publish December unemployment data from Switzerland, which is expected to remain unchanged at 2.4%. On Wednesday, the FOMC is scheduled to release the minutes of its December meeting.

Key technical levels

USD/CHF

Overview:
    Today Last Price: 0.981
    Today Daily change: -54 pips
    Today Daily change %: -0.547%
    Today Daily Open: 0.9864
Trends:
    Previous Daily SMA20: 0.9901
    Previous Daily SMA50: 0.9962
    Previous Daily SMA100: 0.9883
    Previous Daily SMA200: 0.9883
Levels:
    Previous Daily High: 0.9909
    Previous Daily Low: 0.9852
    Previous Weekly High: 0.9921
    Previous Weekly Low: 0.9796
    Previous Monthly High: 1.0009
    Previous Monthly Low: 0.979
    Previous Daily Fibonacci 38.2%: 0.9874
    Previous Daily Fibonacci 61.8%: 0.9887
    Previous Daily Pivot Point S1: 0.9841
    Previous Daily Pivot Point S2: 0.9818
    Previous Daily Pivot Point S3: 0.9784
    Previous Daily Pivot Point R1: 0.9898
    Previous Daily Pivot Point R2: 0.9932
    Previous Daily Pivot Point R3: 0.9955

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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