USD/CHF pierces through 0.9500 handle

By FXStreet The USD/CHF pair fell sharply in last few hours of trading, dropping below 0.9500 handle to 0.9445 – its lowest level since August 2015.

Last week’s BoJ disappointment coupled with declining expectations of Fed rate-hike in June continues to pressurize the US Dollar, which continues to lose ground against its major counterparts. The overall US Dollar index now seems to be on the verge of another major breakdown below 92.00 handle.

The USD/CHF pair has decisively broken below 0.9500 handle and hence seems vulnerable to further downside. However, with daily RSI just dropping to oversold territory the pair could possibly witness some bounce from lower levels.

Technical levels to watch

The pair nearly tested 0.9440 level, a short-term descending trend-line support, and could now witness some pull-back towards 0.9500 handle support break-point, turned immediate resistance. Any further attempts of recovery might now confront strong resistance near 0.9550 level, which if conquered opens rooms for further recovery back towards 0.9590-0.9600 resistance area.

On the downside, weakness below 0.9445-40 support is likely to be short-lived and seems to find support near 0.9400 round figure mark.
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Source:: FX Street