- US Dollar drops sharply, particularly against majors on Tuesday.
- USD/CHF confirms break under 0.9050, tests psychological area at 0.9000.
The USD/CHF pair dropped back under 0.9050 and tumbled to 0.9009, reaching a fresh multi-year low. As of writing, it trades at 0.9035/40, and holds the bearish pressure intact, challenging the 0.9000 area. The US dollar could fall under 0.9000 for the first time since January 2015, when the Swiss National Bank abandoned the EUR/CHF floor.
The move lower in USD/CHF on Tuesday is being driven by a resumption the US dollar bearish trend against majors. Yields are holding steady, economic data came in better-than-expected, but probably US/China tensions and political uncertainty in the US ahead of the presidential elections.
The greenback dropped to fresh cycle lows versus the euro and the pound. The DXY fell below 92.30 for the first time in two years. The index is posting the fifth daily decline in a row.
Technical levels
On the downside, the critical support in USD/CHF is seen at 0.9000; a break lower would target the 0.8980 area immediately and below the next level to consider strands around 0.8955. On the upside, resistance now might be located at 0.9050, followed by 0.9067 (daily high) and 0.9085.
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