- USD/CHF edged lower for the seventh day in the previous eight amid a subdued USD price action.
- Hopes of a swift global economic recovery undermined the safe-haven CHF and helped limit losses.
The USD/CHF pair dropped to near four-month lows during the early European session, around the 0.9360 region, albeit quickly retreated few pips thereafter.
The pair prolonged its recent bearish trajectory witnessed over the past two weeks or so and remained depressed for the second straight session on Thursday. This marks the USD/CHF pair’s seventh day of a negative move in the previous eight and was sponsored by a subdued US dollar demand.
The greenback dropped to multi-week lows during the first half of the trading action on Thursday and was seen as one of the key factors exerting some pressure on the pair. The downtick could also be attributed to technical selling, following the previous day’s close below the 0.9400 mark.
However, hopes of a swift economic recovery undermined the safe-haven Swiss franc and helped limit deeper losses. Despite lingering worries about the ever-increasing coronavirus cases, the incoming positive economic data has been fueling expectations for a sharp V-shaped global economic recovery.
From a technical perspective, the overnight break below June monthly swing lows, around the 0.9375 region, favours bearish traders and might have already set the stage for further weakness. Hence, any attempted recovery might still be seen as a selling opportunity near the 0.9425 horizontal level.
Market participants now look forward to the US economic docket, highlighting the release of Initial Weekly Jobless Claims. The data might influence the USD price dynamics, which coupled with the broader market risk sentiment might produce some trading opportunities later during the early North American session.
Technical levels to watch
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