USD/CHF plummets to fresh 3-month lows, farther below 0.9800 handle ahead of FOMC minutes
• Dovish comments by a duo of Fed officials further pressured the already weaker USD.
• The prevalent risk-on mood does little to lend any support or stall the ongoing downfall.
• Investors look forward to the FOMC meeting minutes for some immediate respite.
The USD/CHF pair finally broke down of its daily consolidation phase and tumbled to fresh three-month tops, farther below the 0.9800 handle, in the last hour.
The bearish pressure surrounding the US Dollar picked up the pace following some dovish comments by influential FOMC members and turned out to be one of the key factors prompting some fresh selling around the major.
Atlanta Fed President Raphael Bostic said that the Fed needs to be patient and seek 'greater clarity' on economic risks, while Chicago Fed President Charles Evans was noted saying that the Fed has the capacity to wait and take stock of the incoming data.
Adding to this, the latest leg of a sudden fall to an intraday low level of 0.9773 could further be attributed to some technical selling on a sustained weakness below the 0.9800-0.9790 region, held since the beginning of this week.
Meanwhile, the prevalent risk-on mood, as depicted by strong gains across equity markets amid US-China trade deal optimism and which tends to dampen the Swiss Franc's safe-haven status, did little to lend any support.
With the pair falling to its lowest level since late September, a follow-through weakness, ahead of today's important release of the latest FOMC meeting minute, now looks a distinct possibility.
Technical levels to watch
Today Last Price: 0.9779
Today Daily change: -36 pips
Today Daily change %: -0.367%
Today Daily Open: 0.9815
Previous Daily SMA20: 0.989
Previous Daily SMA50: 0.9953
Previous Daily SMA100: 0.9881
Previous Daily SMA200: 0.9885
Previous Daily High: 0.9835
Previous Daily Low: 0.9788
Previous Weekly High: 0.9921
Previous Weekly Low: 0.9796
Previous Monthly High: 1.0009
Previous Monthly Low: 0.979
Previous Daily Fibonacci 38.2%: 0.9817
Previous Daily Fibonacci 61.8%: 0.9806
Previous Daily Pivot Point S1: 0.979
Previous Daily Pivot Point S2: 0.9766
Previous Daily Pivot Point S3: 0.9743
Previous Daily Pivot Point R1: 0.9837
Previous Daily Pivot Point R2: 0.986
Previous Daily Pivot Point R3: 0.9884