- USD/CHF witnessed some heavy selling on Wednesday amid a broad-based USD selloff.
- Mixed US macro data failed to impress the USD bulls or provide any respite to the major.
- Oversold conditions on short-term charts might extend some support, at least for now.
The USD bearish pressure remained unabated through the early North American session and pushed the USD/CHF pair to the lowest level since January 2015, around mid-0.9000s.
The pair added to the previous day’s losses and remained under some intense selling pressure for the second consecutive session on Wednesday. The downfall was exclusively sponsored by the heavily offered tone surrounding the US dollar. Diminishing hopes of a swift US economic recovery from the coronavirus pandemic forced investors to continue dumping the USD. Adding to this, the impasse over the next round of the US fiscal stimulus further undermined the greenback.
The USD bulls largely shrugged off Wednesday’s upbeat US ISM Non-Manufacturing PMI, which jumped to 58.1 in July from the 57.1 previous as compared to estimates pointing to a modest pullback to 55. Earlier the ADP report showed that the US private-sector employment increased by 167K in July as against 1500K rise anticipated and dampened prospects for any positive surprise from the official non-farm payrolls data (NFP), scheduled for release on Friday.
Even the upbeat market mood, which tends to dent the Swiss franc’s perceived safe-haven status, failed to lend any support to the USD/CHF pair or stall the ongoing downfall to the lowest level since January 2015. However, oversold conditions on short-term charts might turn out to be the only factor that might help limit any further losses, at least for the time being.
Technical levels to watch
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