USD/CHF plummets to near 3-month lows, fast approaching 0.9800 mark
• The global flight to safety continues to underpin Swiss Franc’s safe-haven demand.
• The US government shut-down/growth fears weigh on USD and add to the pressure.
• Technical selling below 200-DMA aggravates the downfall amid thin liquidity conditions.
The USD/CHF pair remained heavily offered through the mid-European session and tumbled to near three-month lows in the last hour.
Global growth fears, coupled with renewed US-China trade tensions continued underpinning demand for perceived safe-haven currencies, including the Swiss Franc and turned out to be one of the key factors weighing heavily on the major.
Report that the US President Donald Trump was considering an executive order, which would bar US companies from using telecommunications equipment made by China's Huawei and ZTE raised scepticism over a possible resolution in the tariff dispute between the world's two largest economies.
Adding to this, the partial US government shutdown and fears that a global economic slowdown might spill over into the US kept exerting downward pressure on the US Dollar and further collaborated to the pair's ongoing downfall to the lowest level since early October.
Today's downfall could further be attributed to some aggressive technical selling on a sustained weakness below the very important 200-day SMA. Hence, a follow-through slide, amid relatively thin liquidity conditions ahead of the year-end holidays, now looks a distinct possibility.
Moving ahead, today's second-tier US economic releases - Chicago PMI and pending home sales data, will now be looked upon for some immediate respite for the USD bulls and some meaningful trading impetus on the last trading day of the week.
Technical levels to watch
Today Last Price: 0.9826
Today Daily change: -50 pips
Today Daily change %: -0.506%
Today Daily Open: 0.9876
Previous Daily SMA20: 0.9932
Previous Daily SMA50: 0.9976
Previous Daily SMA100: 0.9888
Previous Daily SMA200: 0.9872
Previous Daily High: 0.9963
Previous Daily Low: 0.984
Previous Weekly High: 0.9986
Previous Weekly Low: 0.984
Previous Monthly High: 1.0129
Previous Monthly Low: 0.9908
Previous Daily Fibonacci 38.2%: 0.9887
Previous Daily Fibonacci 61.8%: 0.9916
Previous Daily Pivot Point S1: 0.9823
Previous Daily Pivot Point S2: 0.977
Previous Daily Pivot Point S3: 0.9701
Previous Daily Pivot Point R1: 0.9946
Previous Daily Pivot Point R2: 1.0016
Previous Daily Pivot Point R3: 1.0069