- Safe-haven demand boosts CHF, JPY, gold and bonds, Wall Street deep in red.
- USD/CHF drops from three-week highs to one-week lows in a few hours.
The USD/CHF is having the worst performance in three weeks amid risk aversion. Earlier today the pair peaked at 0.9876, the strongest level since early August and then reversed dramatically, falling 150 pips from the top. So far it has been unable to find support and as of writing trades at 0.9742, at the lowest level since last Thursday.
Swiss franc among top performers
The escalation in trade tensions between the US and China triggered a sell-off in Wall Street and a rally in bonds. Still, market participants await the response of US President Trump to the announcement of an increase in Chinese tariffs to US products.
The US yield curve is again inverted. The 10-year yield plummeted from 1.63% to 1.51%, close to YTD lows. In Wall Street, the DOW JONES is falling 1.72% and the NASDAQ 2.39%.
Today’s event offset Powell’s speech in Jackson Hole and increased expectations about more interest rate cuts from the Federal Reserve. Regarding the greenback, the DXY is down 0.50%, reversing from monthly highs.
USD/CHF Bias now bearish
From a technical perspective, USD/CHF broke below the lower limit of an ascendant channel and also under the 0.9770 support area. At the moment is testing 0.9740/45 and below here the not much until 0.9700/05. On the upside 0.9770 has become the immediate resistance.
|Today last price||0.975|
|Today Daily Change||-0.0087|
|Today Daily Change %||-0.88|
|Today daily open||0.9837|
|Previous Daily High||0.9845|
|Previous Daily Low||0.9813|
|Previous Weekly High||0.981|
|Previous Weekly Low||0.9659|
|Previous Monthly High||0.9952|
|Previous Monthly Low||0.978|
|Daily Fibonacci 38.2%||0.9833|
|Daily Fibonacci 61.8%||0.9825|
|Daily Pivot Point S1||0.9818|
|Daily Pivot Point S2||0.98|
|Daily Pivot Point S3||0.9786|
|Daily Pivot Point R1||0.985|
|Daily Pivot Point R2||0.9864|
|Daily Pivot Point R3||0.9882|
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.