OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CHF drops to four-week lows, approaches critical support

  • The Swiss franc remains supported by the risk aversion environment. 
  • US dollar resumes slide against European currencies as US yields tumble. 

The USD/CHF has continuously been falling since yesterday and during today’s American session, the negative momentum continued to prevail. Recently it bottomed at 0.9856, the lowest level since November 4. 

More USD weakens 

Over the last hours, the US dollar accelerated the decline versus European currencies amid lower US yields. The 10-yield fell from 1.84% to 1.70%, reaching the lowest since early November. At the same time, the US Dollar Index (DXY) also hit monthly lows, approaching 97.50. The index is falling for the third day in a row extending the reversal from 98.50. 

A stronger Swiss franc also drove the decline in USD/CHF. The risk aversion tone across markets triggered by concerns about global trade, favored CHF that against the euro trades at the highest in two months. 

Eyes on October lows

On Friday, USD/CHF tested near parity the highest level since June but it failed to break and now it is approaching the 0.9840/50 area (October and November lows). A break lower would clear the way to more losses, probably targeting 0.9805. 

On the upside, the greenback needs to recover levels above 0.9930 (20-day moving average) to remove the short-term negative bias. 


 

 

Gold Technical Analysis: XAU/USD challenges the 1480 resistance near three-week's highs

Gold is reversing up from the November lows while breaking the 1465 resistance level. It is now nearing the 50 and 100-day simple moving averages (SMAs).
Read more Previous

USD/CAD: Greater downside risks emerge for the loonie – MUFG

Analysts at MUFG Bank revised to the downside the forecasts for the Canadian dollar. They see USD/CAD at 1.3400 during the first quarter of next year
Read more Next
Start livechat