USD/CHF hits ten-day lows near 0.9550 as the greenback remains under pressure
- US Dollar Index tumbles to fresh weekly lows at 98.73, down 4% from the top.
- US data: Consumer Sentiment Index suffers second-largest monthly decline in March.
The USD/CHF pair is falling for the fourth consecutive day amid an ongoing sell-off of the US dollar. The DXY approached earlier on Friday the 100.00 area and recently bottomed at 98.73, the lowest level since March 17.
The US dollar remains under pressure, affected by lower US yields. After a short-lived recovery, the greenback resumed the decline. USD/CHF rose to 0.9655 and reversed. The slide gained speed after falling below 0.9585.
Recently the pair bottomed at 0.9545, the lowest in ten days. It is hovering near the lows, consolidating a weekly loss of 300 pips. Despite rising against the US dollar, the Swiss franc fell against its main European rivals, on the back of the recovery in equity markets.
Wall Street is down on Friday, but still to recent gains. Regarding data, the key report on Friday, was the University of Michigan Consumer Sentiment index that showed a drop to 89.1 in March's final reading from 101 in February, the worst decline since the 2008 financial crisis.
USD/CHF Technical outlook
The recent decline pushed the price below key moving averages in the daily chart, showing the negative bias might prevail. However, volatility continues to be the critical factor. A recovery back above 0.9660/70 (20 and 55-day moving average) would remove the bearish bias.