- The US dollar pulls back to test the bottom of the near-term channel at 0.9465.
- The greenback loses ground amid a moderate risk appetite and growing COVID-19 cases.
The US dollar is trading lower against the Swiss Franc on Monday extending its reversal from Friday’s top at 0.9535 to test the support level of the last six days’ horizontal trading range, at 0.9460. The dollar is dropping across the board on Monday, amid a moderate optimism regarding the economic recovery, yet with the worldwide increase in COVID-19 cases weighing on sentiment.
On the downside, the pair is pushing against the base of the last six days’ trading range, at 0.9460. A clear break below that level might increase selling pressure on the US dollar sending the pair towards June 11 low at 0.9377 before March 12 lows at 0.9325.
Alternatively, the US dollar should break 0.9545/50 to regain bullish momentum and extend towards 0.9585 (Jun 9 high) and 0.9650 (Jun 3, 5 highs).
USD/CHF 4-hour chart
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USD/CHF key levels to watch
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