USD/CHF tumbles to test 0.9300 as CHF soars
- Swiss franc rises across the board during the American session.
- DXY is still in positive ground supported by higher US yields.
- USD/CHF drops ending a six-day positive streak.
The USD/CHF dropped during the last hour more than 30 pips, with a particular trigger, and bottomed at 0.9305, the lowest level since last Wednesday. The pair remains near the lows, testing the 0.9300/05 area.
The move lower in USD/CHF took place amid a broad-based strength in the Swiss franc. At the same time, EUR/CHF dropped to 1.0138, hitting a fresh daily low.
In Wall Street, the Dow Jones is falling 0.60% and the Nasdaq drops by 1.80%. European markets are falling 0.45% on average. US yields printed fresh cycle highs on Monday, the 10-year yield at 2.786% and the 30-year at 2.80%.
The DXY is up 0.09% at 99.92, supported by the sell-off in Treasuries, slightly below last week's high. On Tuesday, key inflation data is due in the US.
USD/CHF back below the 20-SMA
The USD/CHF is falling 30 pips compared to Friday’s close. It is the worst performance in more than a week. Price is back under the 20-day Simple Moving Average that is turned south, suggesting some weakness ahead. The next support level is seen at 0.9290.
On the upside, a daily close above 0.9350 should open the doors to more gains, particularly if the dollar breaks the 0.9375 resistance area.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
