USD/CHF trades with modest losses, around mid-0.9300s

USD/CHF struggled to capitalize on the overnight strong intraday positive move.
The CHF benefitted from reviving safe-haven demand and exerted some pressure.
Sliding US bond yields weighed on the USD and added to the pair’s weaker tone.

Haresh Menghani FXStreet

The USD/CHF pair maintained its offered tone through the early North-American session and is currently placed near the lower end of its daily trading range, around mid-0.9300s.

The pair came under some renewed selling pressure on Wednesday and eroded a part of the previous day's strong recovery move of around 170 pips amid reviving demand for traditional safe-haven currencies, including the Swiss franc.

Against the backdrop of persistent worries over the economic impact of the coronavirus outbreak, fading optimism over the US President Donald Trump's proposed fiscal stimulus measures dented the global risk sentiment on Wednesday.

The anti-risk flow was evident from weaker opening in the US equity markets and further reinforced by a fresh leg down in the US Treasury bond yields. This eventually exerted some downward pressure on the US dollar and collaborated to the downtick.

Meanwhile, Wednesday's release of the US consumer inflation figures, showing that the headline CPI edged lower to 2.3% YoY rate as compared to 2.2% expected, failed to impress the USD bulls or lend any support to the major.

It will now be interesting to see if the pair is able to attract any buying interest at lower levels or the current slide marks the resumption of the previous/well-established bearish trajectory, which dragged the pair to its lowest level since June 2015.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9335
Today Daily Change	-0.0067
Today Daily Change %	-0.71
Today daily open	0.9402

Trends
Daily SMA20	0.9669
Daily SMA50	0.969
Daily SMA100	0.9786
Daily SMA200	0.983

Levels
Previous Daily High	0.9412
Previous Daily Low	0.924
Previous Weekly High	0.9656
Previous Weekly Low	0.9318
Previous Monthly High	0.9851
Previous Monthly Low	0.9609
Daily Fibonacci 38.2%	0.9346
Daily Fibonacci 61.8%	0.9306
Daily Pivot Point S1	0.9291
Daily Pivot Point S2	0.9179
Daily Pivot Point S3	0.9118
Daily Pivot Point R1	0.9463
Daily Pivot Point R2	0.9524
Daily Pivot Point R3	0.9635

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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