USD/CHF tumbles to 1-week lows amid risk aversion on trade war fears


  • 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

USD/CHF

Overview
Today last price 0.975
Today Daily Change -0.0087
Today Daily Change % -0.88
Today daily open 0.9837
 
Trends
Daily SMA20 0.9807
Daily SMA50 0.9839
Daily SMA100 0.9956
Daily SMA200 0.9957
Levels
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

 

 

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