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USD/CHF drops further, on its way to 0.9800

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The demand for the Swiss franc is now picking up pace, dragging USD/CHF to test the 0.9820/10 band, or session lows.

    USD/CHF lower on risk aversion

    Spot has gathered further downside pressure in response to the persistent risk-off trade in the global markets. Generalized unease regarding global growth has triggered a wave of risk aversion early in Asia, dragging the Nikkei 225 to drop more than 5% and boosting the demand for safe haven currencies.

    In the meantime, spot has slipped to 2-month lows in the 0.9825/20 band following a continuation of the offered tone around the dollar and CHF-buying.

    USD/CHF significant levels

    The pair is now retreating 0.57% at 0.9811 facing the next support at 0.9784 (low Dec.14) ahead of 0.9728 (200-day sma) and finally 0.9700 (psychological handle) On the other hand, a surpass of 0.9940 (100-day sma) would open the door to 0.9979 (high Feb.8) and then 1.0012 (55-day sma).
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