“¢ Renewed USD selling weighs for the fourth session in the previous five.
“¢ Reviving safe-haven demand underpins CHF and adds to the selling bias.
The USD/CHF pair met with some fresh supply at the start of a new trading week and has now moved within striking distance of five-month lows, set on Friday.
With investors looking past Friday’s upbeat US economic data, a fresh wave of US Dollar selling bias exerted some downward pressure on Monday and was seen as one of the key factors behind the pair’s negative tone for the fourth trading session in the previous five.
Adding to this, global risk-aversion trade, as depicted by a sea of red across equity markets, benefitted the Swiss Franc’s safe-haven appeal and further collaborated to the pair’s offered tone through the early European session.
A report over the weekend indicated that the announcement over the US President Donald Trump’s proposed tariffs on $200 billion worth of Chinese goods could be made as soon as this Monday and revived fears over a full-blown US-China trade war.
The risk-off mood was evident from a weaker tone around the US Treasury bond yields, which was further seen weighing on the greenback and eventually did little to assist the pair to build on Friday’s attempted recovery move from the lowest level since mid-April.
Moving ahead, today’s relatively thin US economic docket, featuring the release of Empire State Manufacturing Index will now be looked upon for some short-term trading opportunities amid escalating US-China trade tensions.
Technical levels to watch
The 0.9635 region might continue to protect the immediate downside, which if broken might turn the pair vulnerable to extend the slide further towards the 0.9600 round figure mark. On the flip side, immediate resistance is pegged near the 0.9680 area and is closely followed by the 0.9700 handle, above which a bout of short-covering could lift the pair back towards 200-day SMA, currently near the 0.9740 region.
Share
