- USD/CHF witnessed some aggressive selling on Thursday amid a broad-based USD weakness.
- Technical selling below the 0.9100 round-figure mark aggravated the intraday bearish pressure.
- The upbeat market mood did little to lend any support or stall the downfall ahead of the FOMC.
The USD selling pressure picked up pace during the mid-European session and dragged the USD/CHF pair to near two-week lows, around mid-0.9000s in the last hour.
Following an early uptick to the 0.9130 region, the pair met with some fresh supply on Thursday and extended the previous day’s rejection slide from the 0.9200 neighbourhood. The downfall was exclusively sponsored by the heavily offered tone surrounding the US dollar and seemed rather unaffected by the upbeat market mood, which tends to undermine demand for the perceived safe-haven Swiss franc.
Democrat candidate Joe Biden might be edging closer to winning the nail-biting US presidential election. The final results, however, remain unclear amid the continuation of vote counts in several key swing states. This, coupled with the fact that Republican incumbent President Donald Trump has pursued lawsuits and a recount in battleground states, fueled uncertainty. This, in turn, took its toll on the greenback.
Apart from this, possibilities of some short-term trading stops being triggered on a sustained break below the 0.9100 mark further aggravated the bearish pressure. Meanwhile, the prevalent risk-on environment – as depicted by indications of yet another strong opening for the US equity markets – did little to impress bullish traders or lend any support to the USD/CHF pair or stall the steep intraday downfall.
Moving ahead, Thursday’s FOMC monetary policy decision, scheduled to be announced later during the US session, will now be looked upon for some immediate respite for the USD bulls. This, along with the US political developments, might assist traders to grab some meaningful opportunities.
Technical levels to watch
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