USD/CHF hits fresh weekly lows as US dollar extends losses

• USD/CHF drops further below 0.9900, down for the third dayin-a-row.
• DXY continues to retreat from 1-year highs but greenback post modest gains versus commodity currencies.

The USD/CHF paid broke lower during the US session and extend losses. The pair printed a fresh weekly low at 0.9855 and it was about to end the day hovering around the lows, consolidating modest losses.

The pair was falling for the third day in-a-row as the US Dollar correction continued. US Dollar Index Futures retreated further after hitting last week a 1-year intraday high. The Index fell below 94.00 to the lowest since June 14 and dropped into negative territory for the month.

Despite falling against European currencies the US dollar was posting modest losses against commodity and emerging market currencies on the back of risk aversion. The Dow Jones index was down 1.85%, headed toward the lowest close since early May.

USD/CHF Technical Levels

On the downside, below 0.9850 the next support might be seen at 0.9825, followed by 0.9800 and 0.9785 (Jun low). On the upside, resistances could be located at 0.9865, 0.9890 (Jun 25 high) and 0.9925.