- The Swiss franc extended gains versus the US dollar on month-end flows.
- USD/CHF is having worst day in three weeks, break key support area.
The USD/CHF spiked to 0.9747 hours ago and then reversed sharply, initially to 0.9710 and then it broke again to the downside, tumbling to 0.9637, reaching the lowest since April 15.
As of writing, USD/CHF trades at 0.9670 after rebounding to 0.9680. It is posting a loss of 70 pips, the worst decline since April 7. The key factor behind recent moves was the US dollar amid month-end flows.
The greenback weakened versus European majors but rose against the yen. The DXY hit two week lows below 99.00 while at the same time equity prices in Wall Street are falling.
Technical outlook
The USD/CHF broke the strong support around 0.9700, a horizontal level and also where the 20 and 100-day moving averages currently stands. A recovery back above should alleviate the bearish pressure while a close above 0.9770 should clear the way to more gains. On the downside, the 0.9640 is the immediate support followed by 0.9590.
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