USD/CHF drops to fresh four-month lows under 0.9240 as US dollar slides further
- USD/CHF heads for the lowest close since February 2018.
- As the US Dollar remains weak, CHF and EUR outperform.
The USD/CHF pair is falling sharply for the third consecutive day and over the last five trading days lost more than two hundred pips. Since the beginning of Thursday’s American session, it has reached a new cycle low every hour. At the time of writing, it stands at 0.9245, the lowest intraday level since March 10.
The weaker US Dollar continues to be the critical driver of the USD/CHF slide. On Thursday, safe-haven assets are all up, from gold to US bonds. Still, the greenback is falling even against some emerging market currencies and is just flat versus AUD and NZD.
The US Dollar Index (DXY) fell to 94.60, the lowest since September 2018. Earlier it rose to 95.00, but the recovery of the greenback was short-lived and resumed the downside.
Wall Street indexes are lower and about to print fresh lows. Tensions between the US and China contribute to the deterioration in market sentiment. The Global Times reports that China will announce countermeasures on Friday after the US ordered China to close the Houston consulate.
Technical levels
The negative momentum in USD/CHF remains intact and near extreme levels, but no sign of correction is seen. On the downside, the next support emerges at 0.9230 (March 10 low) followed by the 2020 low at 0.9180. On the upside, 0.9270 is the immediate resistance and then comes 0.9300 and 0.9360.
More levels