USD/CHF slumps to fresh two-week lows near 0.9650 on broad USD weakness

USD/CHF is testing the lower limit of its 10-day range.
US Dollar Index is pushing lower toward 99 on Wednesday.
FOMC meeting minutes will be looked upon for fresh impetus.

Eren Sengezer FXStreet

The USD/CAD pair closed the day virtually unchanged near 0.9700 on Tuesday and stayed quiet in that region before starting push lower during the European trading hours. As of writing, the pair was losing 0.58% on the day at 0.9656 and testing the lower limit of its 10-day range.

DXY extends its slide

The USD's market valuation seems to remain as the primary driver of USD/CHF's movements. The US Dollar Index (DXY), which erased last week's gains on Monday, is staying on the back foot for the third straight day on Wednesday. With investors waiting for the key macroeconomic data releases from the US on Thursday, the greenback is struggling to find demand as a safe-haven. At the moment, the DXY is down 0.32% on the day at 99.26.

Although Wall Street's main indexes failed to build on Monday's impressive gains, the S&P 500 futures are gaining more than 1% on Wednesday to point out to a strong opening, which could further weigh on the buck.

Later in the day, the FOMC will publish the minutes of its April meeting. On Tuesday, FOMC Chairman Powell reiterated that the Fed was committed to using its full range of tools to continue to support the economy. However, negative interest rates are not on the table and investors will look for fresh clues on that matter in the FOMC's statement.

Technical levels to watch for

USD/CHF

Overview
Today last price	0.9655
Today Daily Change	-0.0059
Today Daily Change %	-0.61
Today daily open	0.9714

Trends
Daily SMA20	0.9715
Daily SMA50	0.9685
Daily SMA100	0.9688
Daily SMA200	0.9787

Levels
Previous Daily High	0.9729
Previous Daily Low	0.9699
Previous Weekly High	0.9755
Previous Weekly Low	0.9665
Previous Monthly High	0.9803
Previous Monthly Low	0.9595
Daily Fibonacci 38.2%	0.9718
Daily Fibonacci 61.8%	0.971
Daily Pivot Point S1	0.9699
Daily Pivot Point S2	0.9683
Daily Pivot Point S3	0.9668
Daily Pivot Point R1	0.9729
Daily Pivot Point R2	0.9745
Daily Pivot Point R3	0.976

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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