FXStreet (Mumbai) – The USD/CHF pair faces double blow in the Asian trades and drops further towards Friday’s lows, as the persisting risk-off environment boosts the safe-haven in the CHF while weighing on the risk-currency, the US dollar.
USD/CHF trades below 5-DMA
Currently, the USD/CHF pair loses -0.10% to trade at 0.9867, retreating slightly from fresh session lows struck at 0.9856 in early-Asia. The major failed several attempts near daily R2 placed at 0.9879 and keeps the red on the back of broad-based US dollar weakness. The USD index drops -0.19% to 96.81.
Moreover, the Swiss franc remains on the bids versus the US dollar as the heavy losses seen in the Asian indices following tepid Chinese PMI readings, boosted Swiss franc’s appeal as a safer alternative.
Later today, Switzerland’s retail sales data and sentiment on the European markets will drive the major ahead of the US ISM manufacturing report due to be published in the New York session.
USD/CHF Technical Levels
To the upside, the next resistance is located 0.9889/0.9900 (5-DMA/ round number) levels and above which it could extend gains to 0.9959/60 (Oct 28 & 29 High). To the downside, immediate support might be located at 0.9845 (10-DMA) and below that at 0.9800 (round number).
(Market News Provided by FXstreet)